Samsung Biologics, one of the world’s largest contract development and manufacturing organizations (CDMOs) has released its 2022 third quarter earnings report, announcing that it’s reached a cumulative revenue surpassing KRW 2 trillion (approximately $1.4 billion) for the fiscal year. The CDMO recorded a consolidated revenue of KRW 873 billion, operating profit of KRW 324.7 billion, and net profit of KRW 129.2 billion.
“This past quarter saw strong performance and growth due to a consistent momentum in signing new contracts, helping us meet client demand for integrated offerings and deliver long-term value,” said Samsung Biologics president and CEO John Rim in a statement. “Not only have we delivered on our commitments by commencing GMP operations of Plant 4 within just 23 months from the start of its construction, we have also developed and launched our next-generation biotechnologies — S-DUAL™ and DEVELOPICK™ — which will help streamline and accelerate the antibody development process to save time and cost for our clients.”
Major Q3 Projects
The third quarter marked the completion of several important projects for Samsung Biologics, including an end-to-end mRNA vaccine production suite that began operations in August, the acquisition of new land for expanded facilities, and investment in developing new technologies.
The mRNA drug substance production suite’s first project was a partnership with GreenLight Biosciences to produce COVID-19 vaccines. Prior to building its new mRNA suite, Samsung Biologics had provided fill/finish services for Moderna’s mRNA vaccines, but the suite enables the CDMO to also provide drug substance services for clients, synthesizing the mRNA needed for vaccines in addition to transferring it into vials at the same facility. The GreenLight partnership produced a commercial-scale manufacturing run of vaccines, moving from GreenLight’s conceptualization to delivering released clinical trial material in less than two years.
“This demonstrates a major achievement in our continuing goal to offer one-stop, end-to-end mRNA production from drug substance to aseptic fill/finish to commercial release, all from a single site, as we strive across our biomanufacturing network to fight the pandemic,” said Rim in a statement on the completion of the project’s first manufacturing run.
Samsung Biologics also released new proprietary drug development platforms in Q3, launching both S-DUAL™, a high-yield bispecific antibody platform, and DEVELOPICK™, a developability assessment platform for the early-stage screening of molecules.
“Through these new development technologies, we provide early insight and ensure higher yield of molecules, ultimately enabling clients to reach commercialization much more efficiently,” said Rim in a statement on the platforms’ launches at the BioProcess International Conference.
Other milestones achieved in the quarter included the signing of a land-purchasing agreement for the CDMO’s Bio Campus II, which will be 30% larger than Samsung Biologics’ current Bio Campus, as well as a $15 million investment through the Samsung Life Science Fund — a joint venture with Samsung C&T — in U.S.-based biotechnology company Senda Biosciences.
“Senda Biosciences has a platform technology that applies artificial intelligence and machine learning technologies to millions of nanoparticle big data found in animals, plants, and bacteria to create an optimized drug delivery system,” said Samsung Biologics in a statement on the investment.
These new projects, along with Samsung Biologics’ continued manufacturing partnerships with clients from across the biopharmaceutical industry, helped drive another quarter of growth for the CDMO.
Growing as a Sustainable CDMO
Samsung Biologics’ quarter three revenue was 94% higher than its quarter three revenue in 2021, and its operating profit also grew by 94% year over year.
The report follows Q1 and Q2 earnings that also demonstrated significant year-over-year growth for the CDMO, with 96% year-over-year revenue growth in the first quarter, and 22.2% reported in the second quarter.
As it continues to grow, Samsung Biologics is committing itself to becoming a green CDMO, devoting time and resources to its environmental, social, governance committee and activities. These activities include involvement in several sustainability initiatives, such as the Sustainable Markets Initiative, the Carbon Disclosure Project, and the Frontier 1.5D initiative.
“With concerns about climate change growing globally, those in the biologics industry are eager to do their part to combat the causes,” said Jimin Han, director of climate change in the business strategy team at Samsung Biologics, in a recent interview. “Sustainable management is the current hot topic, not only in the biologics sector but throughout the biopharma industry. Everyone is looking for opportunities and solutions to reduce greenhouse gas emissions and ways to transition to eco-friendly sources of energy. In a sector where people’s lives and health are of the highest priority, it is no surprise that the biopharma sector has embraced these opportunities for change.”
What’s Next for Samsung Biologics?
Samsung Biologics will look to close out the final quarter of 2022 by continuing its trend of year-over-year revenue growth. It continues to be a leading supplier of antibodies and has expanded into new areas such as mRNA and biosimilars, fully acquiring biosimilars company Samsung Bioepis in 2022.
In addition to diversifying its portfolio, Samsung Biologics continues to build on its status as one of the leading CDMO in capacity worldwide, commencing partial operations at its fourth plant in Songdo, South Korea, in October. The plant’s construction is expected to be completed in 2023 and will be Samsung Biologics’ largest plant yet, adding 240,000 liters for a total of 604,000 liters. As of now, the plant can handle 60,000 liters, and the CDMO has already begun projects that were secured through presales.
Featuring bioreactors of 10,000 liters and 15,000 liters, Plant 4 is designed to provide a range of CDMO services, with capabilities in early-stage drug development and testing and full-scale quality control labs. Samsung Biologics emphasizes an end-to-end approach, and the plant offers both drug substance and drug product solutions for projects ranging from small to commercial scales.
“At the Plant 4 groundbreaking ceremony in late 2020, we committed to have the plant up and running by October this year. I am very proud to have delivered on that promise, and confident that this will further solidify our position as a global leading CDMO,” said Rim in a statement announcing the launch of operations at the plant. “As a trusted partner, we will continue investing domestically and globally to support our clients worldwide and provide expanded services.”
