Samsung Biologics announced on March 6 that it has entered into a contract manufacturing organization (CMO) production agreement valued at 381.9 billion won (US$287.0 million) with UCB, which is headquartered in Belgium. This agreement is an increase to the contract signed in 2017 with the company, which was worth US$41.65 million. UCB is a global pharmaceutical company that owns five types of epilepsy treatments, including the blockbuster drug Vimpat. Samsung Biologics has continued its partnership with UCB for seven years following the CMO agreement in 2017.
The company cited the world’s largest production capacity, competitive speed, and a foundation of stable yet high quality as reasons for its long-term partnership with UCB.
Samsung Biologics has secured global production capabilities through proactive investment. As of June last year, it operated the world’s largest single factory, Plant 4, with a capacity of 240,000 liters, among others, achieving a total production capacity of 604,000 liters. The company recorded a 99% batch success rate last year and, as of the end of February this year, accumulated a total of 268 regulatory agency approvals, demonstrating its quality capabilities throughout the entire process of pharmaceutical manufacturing and management.
Leveraging these competitive strengths, the company continues to expand new and increased contracts with major global big pharma companies, securing 14 out of the top 20 global big pharma companies as clients. Since its founding, the cumulative order amount has reached US$12 billion, with last year’s orders totaling 3.509 trillion won.
Samsung Biologics plans to enhance its order competitiveness through a growth strategy centered on three main pillars: production capacity, portfolio, and geographic footprint. To meet the rapidly increasing market demand, the company began construction of Plant 5 in April last year. Upon completion, Plant 5 will have a capacity of 180,000 liters, bringing the total production capacity to 784,000 liters.
In addition, the company plans to strengthen its capabilities and expand its portfolio to reflect market trends in next-generation pharmaceuticals, such as antibody-drug conjugate (ADC) therapies. Last year, investments were made in Araris Biotech AG and AIMED Bio, companies developing ADC therapy technologies, through the “Life Science Fund” established with Samsung C&T in 2021. The company is also constructing a dedicated ADC production facility, aiming for commercial production within the year.
A representative of Samsung Biologics stated, “We plan to explore various strategies for further global expansion to maintain flexible communication with our continuously growing global client base and to discover potential new clients.”