CDMO Samsung Biologics Continuing 2022 Momentum With Presales for Launch of Plant 4

Contract development and manufacturing organization (CDMO) Samsung Biologics is continuing to build momentum as it enters the fourth quarter of 2022. After growing at a record rate in 2021, the CDMO reported 96% year-over-year revenue growth in the first quarter of 2022 and followed this with its first consolidated earnings report with newly acquired biosimilars company Samsung Bioepis, announcing record-high semiannual revenue exceeding 1 trillion Korean Republic won (approximately $821 million).

Amid this growth, Samsung Biologics is fast approaching the completion of its largest manufacturing plant, the CDMO's fourth at its headquarters in Songdo, South Korea. Plant 4, set to be the world's largest of its kind with a capacity of 256,000 liters, will begin partial operations in October 2022 and is scheduled to be fully operational by early 2023. As the plant nears completion, Samsung Biologics is already actively securing presales.

"The construction of Samsung Biologics Plant 4 is on schedule with 6 X 10KL production capacity expected to commence operations in October," said Samsung Biologics CEO John Rim in a recent comment on the company's 2022 fiscal year outlook. "The company has secured a number of large-scale manufacturing contracts with active presales activities for Plant 4, and at the close of Q2, in the first half of 2022 alone, the company had secured over $7.9 billion in sales backlog including deals with Janssen, Merck, GSK, [Eli Lilly and Company], and Novartis, to name a few."

Plant 4 Expands Manufacturing Capacity

Samsung Biologics' expansion of facilities to build its manufacturing capacity is a pillar of what Rim has called the company's multidimensional growth plan. Founded in 2011, the CDMO has focused on building facilities quickly and establishing itself as a leader in manufacturing capacity. For Rim, the ability to establish these facilities faster than competitors is a key contributor to Samsung Biologics' growth. 

"Samsung Biologics finished the construction of three plants in only seven years. I've worked in a few global biopharmaceutical firms but never saw any companies that could do what we can," said Rim at the 2022 Biotechnology Innovation Organization (BIO) International Convention in June. "It normally takes four years to construct a facility, but we are nearly two times faster than our competitors. We have very many young, talented employees and smart people contributing to the growth of Samsung Biologics."

The completion of Plant 4 is in line with this trend. Construction on the plant began in 2020, meaning that it will be ready for partial operations just two years after construction began, an unprecedented rate for CDMO facilities.

"I mean, that's phenomenal. Two years, 24 months - I would say there's nowhere in the world that's going to have a facility up and running in two years," said Rim.

With the addition of its fourth plant, Samsung Biologics will become the CDMO with the largest manufacturing capacity at a single location, totaling 620,000 liters at its headquarters in Songdo, South Korea. The plant will provide a range of contract development and manufacturing services, including early-stage drug development and testing capabilities with full-scale QC labs. It's designed to provide a one-stop drug substance and drug product solution for clients with needs ranging from smaller manufacturing projects to large-scale commercial manufacturing. It features bioreactors of 2,000 liters, 10,000 liters, and 15,000 liters.

Responding to Rising CDMO Demand

Samsung Biologics' rapid expansion has been enabled by rising demand for CDMO services. This increase in demand has accelerated since the beginning of the COVID-19 pandemic, when biopharmaceutical companies realized the need to utilize third-party manufacturing to adjust to supply chain issues and quick ramp-ups of production.

Samsung Biologics helped meet this demand through partnering with Moderna to provide fill-finish manufacturing for COVID-19 vaccines in 2021, as well as continuing to produce large quantities of monoclonal antibodies for a variety of applications.

The result has been steady increases in revenue, which the CDMO has invested into growing the company through expanding its facilities, diversifying its portfolio, and hiring more employees.

In addition to the planned completion of its fourth plant, Samsung Biologics is planning the construction of a second Bio Campus facility in Songdo, acquiring 357,366 square meters (about 88.3 acres) of land to construct a facility that will be 30% larger than its first Bio Campus and will house an open innovation facility.

"This milestone further solidifies our roadmap to build a world-class global bio-hub at the heart of Songdo," said Rim in a statement announcing the land acquisition. "Through continuous investment, we will maintain our position as the best-in-class CDMO partner, fully equipped with the world's largest manufacturing capacity, and provide diverse service offerings to our clients to address new emerging diseases and save lives of patients worldwide."

Samsung Biologics' expansion plans extend to employment, as it has grown its workforce at an annual increase rate of 43% since 2013 and added 1,073 new hires in 2021. The new Bio Campus is also expected to create 4,000 jobs by the time of the project's projected completion in 2032. This increase in employment has been in direct response to growing demand for CDMO services in recent years.

The CDMO's other response to demand has been to diversify its portfolio to provide end-to-end mRNA vaccine production capabilities and to increase focus on biosimilars with the full acquisition of Samsung Bioepis, which had been run as a joint venture with Biogen. Demand for mRNA vaccines and biosimilars is expected to increase in the future.

Rim summed up the company's approach in a statement on its first-quarter earnings report, emphasizing that its goal remains to expand as a well-rounded biopharmaceutical company while continuing to lead in capacity, and to focus on how this can be achieved through sustainable methods.

"Samsung Biologics' strong start to the 2022 fiscal year was driven by building momentum around our long-term growth strategy and expanding capacity. Our first-quarter financial performance demonstrates a significant and sustained level of customer demand in our services and capabilities," said Rim. "Turning to the present and future, Samsung Biologics has also committed to making sustainability a key component of the way we work and engage with our partners and communities. In our mission to build a healthier future for all while creating enduring and sustainable value, we are investing in initiatives to mitigate the risks of climate change in the greater areas we impact."

The company has built on this strong start with continued revenue growth throughout 2022, and it will look to round out the year with a successful launch of Plant 4 in the fourth quarter.