Samsung Biologics’ booth at the BIO International Convention 2024 held in San Francisco (Courtesy of Yonhap)
SAN FRANCISCO – Samsung Biologics Co. enjoys a stream of contract development and manufacturing order inquiries from big pharmaceutical companies thanks to its top-notch manufacturing capability amid ongoing trade rows 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 conferece held on the sidelines of the BIO International Convention 2024 in San Francisco on Wednesday.
The South Korean bio contract development and manufacturing organization (CDMO) giant has added two new big pharmas to its client roster this year, and the list 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.
John Rim, president and chief executive officer of Samsung Biologics, speaks to reporters during a press conference at the BIO International Convention 2024 (Courtesy of Yonhap)
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 THE ONGOING US-CHINA DISPUTE
Samsung Biologics is the world’s biggest CDMO in terms of production capacity, and 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 US Congress introduced bills that would restrict federally-funded medical providers from allowing Chinese biotech giants from getting 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 still bet 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.
Samsung Biologics’ manufacturing campus in Songdo, Incheon in South Korea (Courtesy of Samsung Biologics)
“The antibody therapy market has been growing at about 10% annually,” said Rim. “The antibody treatment market is expected to continue expanding with growing demand to treat diverse ailments, including autoimmune disorders, central nervous system diseases and dementia.”
“Demand is growing for not only monoclonal antibody treatments but also bispecific and trispecific antibody therapies, boding well for us,” added the CEO.
He also maintained 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 cusromers,” 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 a warhead. The antibody and the payload connected by the linker can target and eliminate a cancer cell only.
Samsung Biologics has already bagged ADC orders and plans to complete the construction of its ADC manufacturing facility in December, said Rim.
By Dae-Kyu Ahn
powerzanic@hankyung.com
Sookyung Seo edited this article.
