Samsung Biologics finalizes $39.2 mn CMO deal with Roche

[Photo provided by Samsung Biologics Co.]

Samsung Biologics shares turned a tad higher in Monday after the Korean biosimilar manufacturer said a definitive CMO agreement has been signed with Roche following preliminary talks with the Swiss pharmaceutical company in June last year.

As of 12:50 pm, shares of Samsung Biologics gained 0.25 percent to trade at 806,000 won (730).

In a regulatory filing last weekend, Samsung Biologics confirmed it was Roche that exchanged two letters of intent for contract manufacturing worth 43.3 billion won ($39.2 million) last year. Samsung Biologics did not reveal the contract term or the name of the other party that time for confidentiality reasons.

The deal value represents 6.7 percent of Samsung Biologics¡¯ 2019 revenue. The value could be stretched up to $400 million if specific conditions in the agreement are met.

A definitive agreement was signed this time following letters of intent last year and the contract value was already recognized in financial statements and there are no changes other than the disclosure of the other party¡¯s name, said a Samsung Biologics official.

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