Contract Manufacturing of COVID-19 Treatment
The stock price of Samsung Biologics jumped 4.49 percent and regained 500,000 won per share immediately after the opening of the trading session on April 10.
The surge was powered by the company’s announcement immediately before the opening that it signed a letter of intent with a U.S. pharmaceutical company for consignment production of biomedicine worth a total of 441.8 billion won.
The value is equivalent to 62.9 percent of Samsung Biologics’ 2019 sales and the contract is its largest single contract since its listing.
After the opening of the trading session, Samsung Biologics announced that the other party of the contract is Vir Biotechnology and the consignment production is for the COVID-19 medicine it is working on. Then, the stock price soared to an all-time high of 603,000 won.
Technology transfer for the consignment production is scheduled to start within this year. Actual medicine production is scheduled for 2021 at the third plant of Samsung Biologics.