>>Back
AstraZeneca, Samsung reach $331M biologics manufacturing deal amid Korean CMO's expansion push
  • Publisher:Phexcom
  • Publication:2020/9/25

Unlike some other manufacturers, Samsung Biologics has enjoyed a revenue boost from the novel coronavirus pandemic, and it's accelerating its expansion plans to match. With a $2 billion "super plant" in the offing, Samsung now has a new Big Pharma supply deal in place to keep driving growth.

AstraZeneca tapped Samsung Biologics for a $331 million supply pact to produce bulk drug substance and "drug product to support AstraZeneca's biologics therapeutics" at the CMO's Plant 3 facility in Incheon, South Korea, the partners said Tuesday.

The deal can be expanded to $546 million and will help "accelerate Korean bio-health innovation," according to a release. 

An AstraZeneca spokesman said the supply pact would last "several years" and didn't specify which biologics products would be included. A Samsung spokesperson could not be reached for comment by press time.

Samsung's newest supply pact comes as the Korean contract manufacturer revs up its aggressive expansion plans, including building a $2 billion biologics "super plant" that would rank among the largest in the world. 

RELATED: Samsung Biologics plots $2B 'super plant' as COVID-19 sends sales through the roof

In August, Samsung laid out plans for the ambitious facility, which would encompass 256 million square feet of floor space and 256,000 liters of capacity—nearly doubling the company's overall capacity to 620,000 liters.

The plant is set to go online in 2022, Samsung said. 

Meanwhile, Samsung is also negotiating to secure an additional campus in Incheon on 81.5 acres of land, the company said. The new site in the Incheon Free Economic Zone would become an "Open Innovation center to foster biotech companies and build a global R&D facility in addition to securing space for future plants within the new complex," Samsung said. 

RELATED: Samsung scores $362M deal to help Vir scale up COVID-19 antibody production

Samsung's fortunes in recent months have been buoyed by demand tied to COVID-19, and a bustling pipeline of customers for its biologics offerings. 

In April, Samsung and Vir Biotechnology inked a $362 million deal to help scale manufacturing of the biotech's monoclonal antibody program as a potential treatment for COVID-19. 

As part of the agreement, Samsung will start manufacturing as early as October with its first engineering run and potentially start producing commercial batches starting in 2021. 

Samsung followed that up with a $231 million pact with GlaxoSmithKline in May to ramp up production of lupus med Benlysta. The eight-year supply deal will start rolling out commercial doses of Benlysta in 2022, and the partners plan to expand the agreement to other GSK specialty-care products in the future.