Samsung Biologics to begin early operations of No. 5 plant in 2025
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“We decided to move up the operation date of our No. 5 plant by five months to ensure that we process the rapidly growing order volume,” Samsung Biologics Chief Executive Officer (CEO) John Rim told reporters at the BIO International Convention taking place in Boston, U.S.
Rim said that the decision was made to enhance customer satisfaction amid accumulated orders that have exceeded $10 billion since its inception in 2011.
In April, Samsung Biologics invested 1.98 trillion won ($1.5 billion) to build a new plant with an annual capacity of 180,000 liters.
Once the operations of the No. 5 plant begins in April 2025, the company’s total production capacity will reach the world’s largest of up to 784,000 liters.
The advanced operations come on steady growth of the contract development and manufacturing organization (CDMO) market.
According to data from Boston Consulting Group, the global CDMO market is projected to grow at an annual average of 12.2 percent to reach $27 billion in 2026 from $19.1 billion this year.
“Demand for CDMOs will inevitably grow as new antibody drugs continue to come out in the U.S. and Europe,” said Rim.
The CEO also added that the company’s knowledge and experience from building four factories over the past decade has enabled them to shorten the construction period of its fifth plant.
Industry insiders expect construction of the company’s three other new plants will be carried out swiftly. Each factory will have the same capacity of 180,000 liters.
The company’s No. 4 facility went into full operations in June, following further expansion after its partial opening in October. The plant produces 12 products ordered by nine customers.
“We are currently discussing the production of 44 new products from 29 potential customers,” said Rim. “We have also revised up the earnings target by 15~20 percent from the initial 10~15 percent,” he added.
The company’s sales are estimated at 3.53 trillion won this year.
Samsung Biologics’ next step is to enter the antibody drug conjugate (ADC) market as ADCs are considered the next generation of medicine.
”We have received inquiries from existing customers about collaborating on ADCs for win-win synergy,” the CEO said.
“We’re currently seeking a site for the production facility that will be completed next year,” Rim added.
Samsung Biologics earlier invested in Swiss company Araris Biotech AG to secure original technology beyond simply constructing facilities.
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