Did Samsung Biologics Just Secure a $1.29 Billion Deal with a US Pharma Company?
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Synopsis
Samsung Biologics has secured a remarkable $1.29 billion contract with a US pharmaceutical firm, expanding its total contract manufacturing value for the year to over $3.6 billion. This achievement underscores the company's adaptability to client needs across continents, with significant growth in net profits and ongoing investments in new facilities.
Key Takeaways
- Samsung Biologics has signed a $1.29 billion contract with a U.S. pharmaceutical firm.
- This deal raises the company's total contracts for the year to over $3.6 billion.
- They have partnerships with 17 of the top 20 pharmaceutical companies worldwide.
- The company plans to expand its operational capacity significantly by 2032.
- Recent profits indicate a strong performance despite market expectations.
Seoul, Sep 9 (NationPress) Samsung Biologics, a prominent biotech company from South Korea, announced on Tuesday that it has finalized a 1.8 trillion-won ($1.29 billion) agreement to deliver manufacturing services for a U.S. pharmaceutical firm until 2029.
This recent deal elevates the firm's total contract manufacturing value for the year to over US$3.6 billion, as stated in a press release, according to reports from Yonhap news agency.
The identity of the U.S. firm involved has not been revealed.
Samsung Biologics mentioned that it has successfully secured significant contracts this year by adapting to the changing needs of clients in Asia, Europe, and the U.S.
The company has collaborations with 17 of the top 20 pharmaceutical companies globally and is continually renewing contracts with existing clients to aid in the development of new therapies, the release noted.
Currently, Samsung Biologics manages five biopharmaceutical plants located in Songdo, just west of Seoul, and has plans for three additional facilities to be completed by 2032.
The combined annual capacity of its existing plants is 784,000 liters, which is set to expand to 1.324 million liters once the new plants become operational.
For the April-June quarter, Samsung Biologics recorded a 2 percent increase in net profit year-on-year, totaling 324.4 billion won ($235.1 million).
Operating profit surged by 9.5 percent year-on-year to 475.6 billion won, while sales jumped 11.5 percent to 1.28 trillion won.
However, the net income fell short of market expectations, with analysts estimating an average net profit of 354.8 billion won, as per a survey by Yonhap Infomax, the financial data arm of Yonhap News Agency.
For the first half of the year, Samsung Biologics reported sales of 2.59 trillion won and operating profit of 962.3 billion won, both representing increases from the previous year.
The biotech division of Samsung Group attributed its second-quarter success to consistent operations at Plants 1 through 3 and enhanced activity at Plant 4.
Point of View
It is essential to recognize Samsung Biologics' remarkable growth trajectory in the biopharmaceutical sector. This recent contract exemplifies the company's strategic expansion and its pivotal role in the global health landscape. The firm’s ability to adapt to client needs and secure substantial agreements not only reflects its expertise but also its commitment to innovation and service excellence. We stand firmly with national enterprises that contribute significantly to our economy and healthcare advancements.
NationPress
09/09/2025
Frequently Asked Questions
What is the value of the contract Samsung Biologics secured?
Samsung Biologics has secured a contract valued at 1.8 trillion won, equivalent to $1.29 billion.
Which company has Samsung Biologics partnered with?
The name of the U.S. pharmaceutical company involved in the contract has not been disclosed.
How much has Samsung Biologics earned in contracts this year?
The company's total contract manufacturing value for this year exceeds $3.6 billion.
What is the current capacity of Samsung Biologics' facilities?
Samsung Biologics currently has an annual capacity of 784,000 liters, which will increase to 1.324 million liters with new facilities.
How has Samsung Biologics performed in the second quarter?
In the second quarter, Samsung Biologics reported a net profit of 324.4 billion won, a 2% increase from the previous year.
