Samsung Biologics clinches $352 million deal with Belgium's UCB

Samsung Biologics inked a $352 million contract manufacturing organization deal with Belgium-based UCB, increasing the total deal to $394 million.

Samsung Biologics' fourth plant in Songdo, Incheon [SAMSUNG BIOLOGICS]

Samsung Biologics inked a $352 million contract manufacturing organization (CMO) deal with Belgium-based UCB, the Korean company said in a regulatory filing on Wednesday.

It is an expansion of their initial $41.7 million deal inked in 2017. The size of the deal now totals $394 million.

A CMO refers to companies that provide drug manufacturing services on a contract basis.

UCB is a global pharmaceutical company specializing in epilepsy treatment, with five lineups.

Samsung Biologics attributed the expansion of the deal to UCB's claim to the "world's largest capacity" as well as its "speediness."

Samsung Biologics started full operation of its No. 4 factory in Songdo, Incheon, boosting its total capacity to 604,000 liters, which it says is equivalent to nearly 30 percent of the global contract manufacturing market for biopharmaceuticals.

Construction of its fifth plant began in April, with the aim to start operations in April 2025. The fifth plant has a capacity of up to 180,000 liters.

Samsung Biologics has 14 of the top 20 major global pharmas as customers including AstraZeneca, Moderna, GlaxoSmithKline, Pfizer and Eli Lilly. Its accumulated order total at $12 billion so far.

BY SARAH CHEA [chea.sarah@joongang.co.kr]