Samsung Biologics wins $231 million worth CMO deal from GSK

2020.05.22 11:57:29 | 2020.05.22 16:23:41

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Samsung Biologics Co., a biopharmaceutical business arm of South Korea’s Samsung Group, on Friday announced that it has signed a long-term contract manufacturing organization (CMO) deal worth $231 million with British multinational pharmaceutical company GlaxoSmithKline plc (GSK).

Shares of Samsung Biologics closed Friday 1.48 percent higher at 618,000 won upon the order news.

Under the contract effective for eight years, Samsung Biologics will commercially produce GSK’s lupus treatment Benlysta (belimumab) in 2022, after preparatory work this year such as licensing-out and trial manufacturing. Production goods and volume could be expanded in the future upon GSK request, the company said.

“Today’s agreement with Samsung Biologics complements and reinforces our existing world-class pharmaceutical manufacturing capability and will help ensure we can continue to deliver the transformative medicines that patients need,” said Regis Simard, president of pharmaceuticals supply chain at GSK.

Kim Tae-han, chief executive of Samsung Biologics, also said, the company is very “proud” and “excited” to announce long-term agreement with GSK.

The Korean contract drug manufacturer also has signed a separate 184.1 billion won ($149 million) production contract to supply bio medicine to a U.S.-based pharmaceutical company, it said.

The name of the company and contract period will be disclosed after Dec. 31, 2023, due to confidentiality issues, the company added.

By Lee Eun-joo

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