Samsung Biologics thrives with big deals, eyes ADC for future

Samsung Biologics continues to thrive in the biopharmaceutical industry, attributing its success to speed, quality, and delivery. The company saw an 18 percent increase in revenue in Q3 and raised its revenue forecast for the year.

John Rim, Samsung Biologics CEO, poses for photo at the company's booth during the CPHI Worldwide 2023 held in Barcelona, Wednesday. [SAMSUNG BIOLOGICS]

BARCELONA, Spain — Amid the weaker-than-expected sector-wide growth, Samsung Biologics is still going strong, racking up a series of massive contracts from global big pharma.

It all boils down to “speed, quality and delivery,” according to Samsung Biologics CEO John Rim.

“While many companies are struggling at this point, we have been expanding our business in terms of customers, and based on the trust we’ve built with the customers, the volume of orders is on a steady rise,” said Rim during a press event held on Wednesday in Barcelona, during the CPHI Worldwide 2023.

In the July-September period, Samsung Biologics saw an 18 percent on year jump in revenue to 1.03 trillion won ($758 million), a record high since the company was founded in 2011.

The quarterly operating profit came in at 318.5 billion won, down 2 percent on year, but above the market consensus of 294 billion won compiled by FnGuide.

Samsung Biologics signed a streak of new contract manufacturing deals throughout this year, eight of which are worth more than 100 billion won.

Samsung Biologics raised its revenue forecast for this year to 3.6 trillion won, up from the previous 3.53 trillion won. This is an on year increase of more than 20 percent.

Samsung Biologics increased its revenue forecast twice so far, while other major contract development and manufacturing organizations (CDMOs) such as Lonza, and Catalent are lowering their revenue and margin outlooks for this year.

Rim has been actively engaging in sales this year, communicating with global customers. The CMO contracts signed this year so far are valued at 2.7 trillion won in total.

The CEO pointed to Samsung Electronics Executive Chairman Lee Jae-yong’s strong drive for the bio business, as well as the Samsung brand and technology accumulated thus far, as some of the factors that contributed to the company’s rapid rise over the past 12 years.

“For Samsung Biologics to be able to come this far, Lee's support and willingness played a part, and so did the brand name,” said Rim.

“Moreover, Samsung Electronics already has experience involving clean room technology and so on.”

Samsung Biologics is currently building a fifth plant with a production capacity of 180,000 liters (163,000 quarts), which will begin operation in April 2025.

Upon completion of Plant 5, Samsung Biologics will secure a contract manufacturing capacity of 784,000 liters a year.

“When we tell pharmaceutical companies that we will build a production plant in two years, they don't believe us,” as it takes about four years in general, said Rim.

“Because Samsung has extensive experience in building such facilities, we can do it much faster.”

Samsung is eyeing antibody-drug conjugates (ADC), which enables improved anti-cancer therapeutic effects with minimum damage to non-tumor cells, as one of its future growth drivers as well.

“Our board of directors recently approved the ADC business,” said Rim. “So we plan to build an ADC facility at a [2.45-acre] site in Songdo by the end of 2024.”

In September, Samsung’s Life Science Fund made an equity investment in AimedBio, a Korean biotech company specializing in ADC.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]