Novartis and Samsung Biologics Sign Low-Profile $81 Million Deal

Samsung Biologics, the biotechnology division of Samsung Group, is signing a deal worth $81 million with Switzerland-based Novartis. The contract manufacturing (CDMO) giant has not disclosed further details of the deal. 

The regulatory filing also disclosed that the deal amount represents 6.4% of Samsung’s sales in the 2021 fiscal year, which were listed at around $1.2 billion. This news follows Novartis’ latest manufacturing expansion with the approval of its multi-product North Carolina facility.

Related article: Novartis CAR-T Cell Therapy Receives FDA Approval for Third Indication to Treat Follicular Lymphoma

Samsung’s Stepping Up Its Drug Manufacturing Efforts

In March, Samsung’s biotech arm announced a “multidimensional growth plan” doubling down on three pillars: encompassing expanded manufacturing capacity, continued advancements in business portfolio, and greater global footprint. 

“As a leading CDMO service provider, we will continue to demonstrate our excellent business operations throughout our value chains to ultimately contribute to saving the lives of patients and build a better future for all,” said John Rim, CEO of Samsung Biologics in its 2022 shareholders meeting.

Samsung Biologics’ latest facility – Plant 4, is expected to be partially operational by October 2022 to support 6 x 10 kilolitre (KL) production capability. The plant is projected to finish construction in mid-2023, six months ahead of schedule. Upon completion, it will be the world’s largest biomanufacturing capacity at a single site.

Samsung Biologics has been expanding gradually over the past few years, and secured manufacturing contracts with GSK, Merck KGaA, Moderna, AstraZeneca, etc.

Author

Fujie Tham