Samsung Biologics grabs record contract from Pfizer

A rendering of Samsung Biologics Co.’s fourth plant in Incheon [Photo provided by Samsung Biologics]

Samsung Biologics Co. on Thursday announced a strategic partnership with Pfizer for a long-term contract manufacturing of a diverse range of pharmaceutical products, setting a new milestone in the Korean biopharma’s history as it marks the largest single-contract amount ever recorded.

The value of this groundbreaking deal amounts to $411.3 million, surpassing its previous $350.97 million contract with AstraZeneca.

Under the partnership, Samsung Biologics will undertake the manufacturing of Pfizer’s comprehensive portfolio of biosimilar products, encompassing oncology, inflammation and immunotherapy drugs. Production will be carried out at Samsung Biologics’ fourth plant, which was recently completed.

The contract size represents a significant proportion, about 17.83 percent of Samsung Biologics’ revenue in the previous year. In March, the two companies sealed a new contract worth 241 billion won ($184 million).

Samsung Biologics Chief Executive Officer John Rim emphasized the timely completion of the plant, saying the contract was made possible as the fourth plant was completed as scheduled earlier this month. “We are also expanding our second bio campus to provide our clients with more flexible and advanced contract manufacturing services.”

Pfizer’s Chief Global Supply Officer Mike McDermott expressed his satisfaction with the expansion of the strategic partnership with Samsung Biologics.

This strategic partnership between Samsung Biologics and Pfizer underscores the growing demand for contract manufacturing services in the biopharmaceutical industry.