Samsung Biologics has record first-half order backlog under CEO John Rim

Samsung Biologics Co. Chief Executive Officer John Rim [Photo provided by Samsung Biologics]

South Korea’s Samsung Biologics Co., led by Chief Executive Officer John Rim, saw its cumulative order amount reach a record of 2.34 trillion won in the first six months this year.

Analysts say that John Rim’s active global field management as CEO and head of the Global Sales Center have led to a surge of orders.

According to industry sources on Monday, John Rim spent about 30 days in the first half of this year discussing partnerships with global pharmaceutical companies in the U.S. and Europe. Starting with the 2023 J.P. Morgan Healthcare Conference in San Francisco in early January, he participated in major events in the pharmaceutical and biotech industry, including DCAT Week in New York in March and theBIO USA 2023 in Boston in June. During these events, John Rim focused on establishing a strong network with pharmaceutical executives.

In May, he also attended a series of meetings Samsung Electronics Co. Executive Chairman Jay Y. Lee held with the CEOs of the top five global pharmaceutical companies in the U.S. to explore new business opportunities, with the aim of fostering the bio business as the second semiconductor at the group level. The CEOs at the meetings included Joaquin Duato of Johnson & Johnson (J&J), Giovanni Caforio of Bristol Myers Squibb Co. (BMS), Noubar Afeyan of Flagship Pioneering, Christopher Viehbacher of Biogen Inc., and Kevin Ali of Organon & Co. During the meetings, John Rim, as the head of a company representing not only the group but also the domestic pharmaceutical and bio industry, reportedly provided valuable advice on cooperative initiatives.

John Rim previously worked at Roche Holding AG and Genentech Inc. and joined Samsung Biologics in September 2018 before becoming CEO in December 2020. Within just a year in office, he increased the company’s sales and operating profit by 35 percent and 84 percent, respectively.

Last year, Samsung Biologics achieved sales of 3 trillion won and operating profit of 1 trillion won, becoming the first domestic pharmaceutical and biotech company to reach the milestone. He has been praised for achieving rapid growth based on a precise understanding of the bio industry.

Earlier this year, concerns arose about Samsung Biologics’ overseas business as the departure of the head of the Global Sales Center without an expert to lead its overseas activities. To address the issue, John Rim took matters into his own hands. He personally took on the role of the head of the center.

He also began serving as the chairman of the board of directors in March to expedite decision-making. Global pharmaceutical companies such as J&J, BMS, and Merck & Co. Inc. all have CEOs who also chair their boards of directors to efficiently manage their businesses.

John Rim’s active involvement in managing overseas operations is being reflected in actual performance. Samsung Biologics announced on Monday that it has signed a contract manufacturing organization (CMO) deal worth 511.1 billion won ($395.19 million) with Novartis AG, the world’s fifth-largest pharmaceutical company. The volume, which was originally valued at 100.5 billion won when the company signed a letter of intent (LOI) in June last year, has increased to 405.2 billion won based on high trust built in the process leading to the main contract a year later and was finalized at a total of 511.1 billion won.

Additionally, last week, the company inked a CMO contract worth around 1.2 trillion won with Pfizer Inc, a U.S. multinational pharmaceutical and biotechnology company. With aggressive marketing, excellent quality control capabilities, and superior production speed that surpasses its competitors, Samsung Biologics has continuously secured additional volumes in less than a week.