Samsung Biologics and Bristol Myers Squibb are expanding their work together, with the contract drug manufacturer now adding large-scale production of one of the pharmaceutical firm's antibody cancer drugs.
As part of the roughly $241 million deal, South Korea-based Samsung will manufacture the antibody cancer drug substance at its newest and largest facility in Incheon, South Korea, according to the company.
The two companies have worked together for over a decade. They are now expanding their partnership as Bristol Myers Squibb looks to ensure continuous supply and expedited delivery of products, Samsung Biologics President and CEO John Rim said in a statement.
Samsung Biologics has been pushing to grow its work with major pharmaceutical companies in recent months. The contract drug maker signed a $411 million deal with Pfizer in June for the production of biosimilar drugs, as well as a $183 million deal in March for manufacturing capacity through 2029.
And in late 2021, the company signed a $380 million deal with AstraZeneca to produce the pharmaceutical giant's COVID-19 long-acting antibody substance and to begin manufacturing a cancer immunotherapy product in 2022.
To match the growing demand for contract drug manufacturing, Samsung announced plans in June to accelerate plans for its fifth plant by five months. Construction on the Incheon site began in the first half of this year, and operations are slated to begin in April 2025. The announcement came just as the company began fully operating its fourth plant.
"Given the continuing increase in the demand for outsourced manufacturing of biopharmaceuticals, we are proactively making this investment in alignment with our growth strategy to further strengthen our standing as a leading CDMO," Rim said in a March statement regarding the new plant announcement.
Such growth is also reflected in the company's earnings, with revenues up 33% YoY in Q2 2023. The pandemic also spurred heightened interest in the company's contract work. Before COVID-19, Samsung counted three of the top 20 "big pharma" companies as clients. Now, it counts 13 of them among their ranks.