Sector News

High-flying Samsung Biologics inks $1B production pact with unnamed US pharma

July 7, 2024
Life sciences

As Korean CDMO giant Samsung Biologics continues to ink production pacts around the globe, the company has added another billion-dollar feather to its cap.

In a public disclosure posted Tuesday, Samsung Bio revealed a new manufacturing accord with a large, unnamed U.S. drugmaker worth 1.46 trillion Korean won (about $1.05 billion). The deal represents more than 39% of Samsung Biologics’ total sales haul from last year, which clocked in at around 3.7 trillion won (roughly $2.7 billion).

Samsung Bio and the unnamed company signed a letter of intent around the deal on June 5. The latest production accord is set to run through the end of 2030, according to the public disclosure, though the final manufacturing period may “vary according to the agreement between the two companies,” Samsung Biologics said.

Samsung Bio has been on a winning streak in recent months, bucking the contract manufacturing industry’s widespread slump last year and posting an all-time earnings high for the first three months of 2024. Earnings aside, Samsung Biologics has continued to upgrade a range of production pacts throughout the year, as well.

Endpoints News first reported Samsung Biologics’ new contract on Tuesday.

Back in March, Samsung Bio expanded its seven-year partnership with Belgium’s UCB with a new drug substance manufacturing deal worth 382 billion won ($288 million).

As part of the deal, Samsung Bio will help crank out UCB’s anti-tau candidate to treat progressive supranuclear palsy (PSP), which is currently in early-stage testing.

The latest deal with UCB—the third between the companies—builds on a $42 million contract they signed in 2017, which runs through the end of 2030.

Meanwhile, Samsung Bio in June retooled a deal with Baxter Healthcare first signed in 2017. Under the updated pact, Baxter will now pay Samsung Biologics upwards of $223 million for its manufacturing services through the end of 2034. Baxter had previously been on the hook to pay just $15 million for Samsung Biologics’ production assistance.

Samsung Bio’s recent dealmaking spree comes after the company in late April reported record first-quarter consolidated sales of 946.9 billion South Korean won ($690 million) compared to 720.9 billion South Korean won ($520 million) for the same quarter in 2023.

By Fraiser Kansteiner

Source: fiercepharma.com

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