Samsung Biologics eyes windfall gain amid US-China row

SAN DIEGO – Samsung Biologics Co. is enjoying a stream of contract development and manufacturing order inquiries from big pharmaceutical companies thanks to its top-notch manufacturing capability amid the ongoing trade row between the US and China, said its chief.

“We have secured orders from 16 of the world’s top 20 pharmaceutical companies by market capitalization,” John Rim, president and chief executive officer of Samsung Biologics, told reporters during a press conference on the sidelines of the BIO International Convention 2024 in San Diego, CA on Wednesday.

The South Korean bio contract development and manufacturing organization (CDMO) giant has this year added two new big pharma to its client roster list, which includes Pfizer Inc., Merck & Co. (MSD), Roche Holding AG, AstraZeneca plc, Novartis AG, GSK plc and Eli Lilly and Company.

Its clients more than quintupled in less than four years since Rim joined the company as CEO in 2020.

Rim attributed the company’s unrivaled production capabilities, which guarantee speedy and flexible drug substance and product development and manufacturing, to the growing number of clients.

A JUMP IN INQUIRIES AMID ONGOING US-CHINA DISPUTE

Samsung Biologics is the world’s biggest CDMO in terms of production capacity and is expected to expand its lead with a production capacity of 784,000 liters once it embarks on the operation of its fifth manufacturing facility in April next year under a fast-forwarded plan.

Rim said the company is seeking to speed up the construction further to cope with surging CDMO demand from its clients while reaffirming that it is weighing the timing for investment in its sixth plant.

Samsung Biologics CEO also admitted that client inquiries for CDMO orders have doubled since the US Congress introduced bills that would restrict federally funded medical providers from allowing Chinese biotech giants to obtain genetic information about Americans.

The Korean bio CDMO recently expanded its CDO business to take advantage of the current situation, said Rim.

BIG GROWTH POTENTIAL FOR ANTIBODY THERAPIES

The CEO is still betting big on the antibody therapy market, shrugging off looming concerns that the antibody treatment market with huge bio CDMO demand would wane due to the soaring demand for GLP-1 drugs for obesity treatment.

“The antibody therapy market has been growing at about 10% annually,” said Rim. “It is expected to continue expanding with growing demand to treat diverse ailments, including autoimmune disorders, central nervous system diseases and dementia.”

“Demand is on the rise for not only monoclonal antibody treatments but also bispecific and trispecific antibody therapies, boding well for us,” added the CEO.

He also maintains his rosy outlook for the antibody-drug conjugate (ADC) market, saying Samsung Biologics is mulling CDO, contract manufacturing (CMO) and drug product (DP) services for ADC treatments.

“We aim to offer tailored services for ADC development and manufacturing for different ADC customers,” added Rim.

ADC is considered the next-generation cancer treatment. It is called a biological missile, consisting of antibodies, payloads and linkers. The antibody guides the payload, or small molecule drugs that act as warheads. The antibody and the payload connected by the linker can target and eliminate cancer cells without damaging surrounding cells.

Samsung Biologics has already bagged ADC orders and plans to complete the construction of its ADC manufacturing facility in December, said Rim.

Write to Dae-Kyu Ahn at powerzanic@hankyung.com

Sookyung Seo edited this article.