Expanding Market Presence
Samsung Biologics is expanding its presence in the global biopharmaceutical contract development and manufacturing organization (CDMO) market.
Lonza is the number one company in terms of sales in the biopharmaceutical CDMO market, with Samsung Biologics ranked second and WuXi Biologics third. In 2019, however, in year on year sales growth, Samsung Biologics ranked first with 57.7 percent, followed by WuXi Biologics with 44.8 percent and Lonza with 34.2 percent. Over the past one month, their stocks' earnings rates were 21.4 percent for Samsung Biologics, 16.8 percent for Lonza, and 17.5 percent for WuXi Biologics.
Samsung Biologics posted a record high in sales and operating profit in 2019. Its sales reached 701.6 billion won, its operating profit 91.7 billion won, and net profit 202.9 billion won.
Samsung Biologics has secured a total production capacity of 364,000 liters after the completion of its third plant and the expansion of sCMO facilities in 2018. Its production capacity is the largest among global CMO companies. Moreover, the company won 51 global manufacturing approvals from the FDA and the EMA as of the end of January 2020.
Samsung Biologics president Kim Tae-han announced at the general shareholders' meeting in 2019 that his company will become the game changer of the global CMO market.
As of the end of 2019, Samsung Biologics received 87 orders from 46 global customers and signed 35 CMO contracts, 42 CDO contracts and 10 CRO contracts, a Samsung Biologics official said. In particular, in the CDO business, the company has been successfully expanding its value chain by signing 42 product development agreements with 18 corporate customers by the end of 2019 and in two years since entering the business.
Samsung Biologics plans to land more than 12 CMO orders and 18 CDO orders this year. The company is expected to achieve the goal as it produces better quality biopharmaceutical products faster and at more affordable prices than its rivals.
“Global pharmaceutical companies do not build additional production facilities, but give orders to CMO companies,” said an official of the pharmaceutical industry. “This trend will help fuel the growth of Samsung Biologics.”