Samsung Biologics scores $897 million CMO order with Pfizer
South Korean contract development and manufacturing organisation (CDMO) Samsung Biologics marks another contract milestone as the company announces two high-value deals totalling £897 million with pharma giant Pfizer, including the CDMO's largest single contract signing to date.
With the addition of two new deals, Samsung Biologics and Pfizer seek to strengthen their existing partnership. The first of these two deals - valued at $704.4 million, the biotech's most substantial single contract since the company began in 2011 - will expand the transactional value of the deal from the $411.4 million set out in the initial agreement publicised in a letter of intent on 8th June.
The second deal - valued at $192.8 million - builds upon the $182.7 million agreement established in March. However, neither company has disclosed details of the medicines involved under the arrangement.
Initial collaboration between the two companies began earlier this year, when Samsung Biologics won a $182.7 million contract manufacturing organisation agreement in March 2023 to produce an undisclosed Pfizer medicine.
The value of this deal was quickly surpassed in June, when Samsung Biologics and Pfizer entered a $411.3m strategic partnership, under which Samsung Biologics agreed to produce a wide range of Pfizer's biosimilar products, including drugs for tumours, inflammation, and autoimmune diseases.
"We are pleased to extend the strategic collaboration with Pfizer, as we share and support their strong vision to bring innovative solutions for patients around the globe," said John Rim, president and CEO of Samsung Biologics, in response to the June announcement. "This new meaningful partnership comes just as our Plant 4 is fully completed early this month, as we had previously committed, and are on the move for future expansion into our second campus in order to provide our clients with even more flexible and advanced manufacturing technology."
Manufacturing will take place at Samsung Biologics' state-of-the-art Plant 4 facility in South Korea, which is expected to operate until 2029. The plant commenced operations on 1st June with an impressive annual production capacity of 240,000 litres. Combined with its other three domestic plants, Samsung Biologics boasts a total manufacturing capacity of 604,000 litres per year. The company aims to double this production volume to 1.3 million litres by 2032, further solidifying its position as a global leader in the field.
