Samsung Biologics capitalises on pandemic boom to expand in US and Europe

Samsung Biologics, the biopharmaceutical unit of South Korea’s Samsung Group, is searching for to construct its first vegetation within the US and Europe because it rebalances its world provide chains following the pandemic.

The world’s largest contract drugmaker, which produces for different world pharmaceutical firms, is cash-rich two years into the pandemic, posting a 35 per cent leap in 2021 income. Its manufacturing order backlogs are up 25 per cent to $7.5bn on surging demand for coronavirus therapies provided by US drugmaker Eli Lilly and the UK’s GSK and AstraZeneca.

John Rim, the corporate’s chief government, instructed the Monetary Instances that the corporate seeks to construct abroad vegetation to be nearer to its primary prospects and meet surging demand for contract manufacturing.

“The Covid state of affairs has highlighted extra of the necessity to diversify and danger handle, significantly round provide chain administration. It has additionally highlighted the necessity for doing issues fast,” stated Rim, who has been head of the corporate since December 2020.

He stated demand for Covid antibody therapies have been exceeding provide due to rising orders from US prospects, although demand for Covid vaccines decreased lately due to the Omicron variant. The corporate added that it has not but skilled any vital provide disruption because of the struggle in Ukraine.

The corporate signed a “fill and end” take care of Moderna final Might and started producing vials of Moderna’s mRNA vaccines in September. From April, it’s going to additionally begin producing GreenLight Bioscience’s mRNA vaccine candidate, which is in third-stage scientific trials.

The pandemic has helped the corporate quickly increase its product portfolio. It has diversified from its deal with monoclonal antibodies — molecules engineered to struggle most cancers and autoimmune ailments — to supply merchandise together with cell and gene therapies and next-generation vaccines utilizing mRNA, pitting it in opposition to its Swiss rival Lonza Group and Germany’s Boehringer Ingelheim.

Rim stated biosimilars, that are decrease priced than branded merchandise, are making sooner penetration in Europe than within the US, citing extra sophisticated patent and pricing points within the US.

“However the US will begin to decide up as properly as a result of all of the well being techniques globally are below extra stress to cut back bills and make [treatments] extra out there to sufferers,” he stated.

Samsung Biologics expects to double its market share for large-scale monochrome antibody manufacturing to 40 per cent subsequent yr as soon as its $1.4bn fourth plant in Songdo comes on-line in October.

International gross sales of organic medicines are estimated at $419bn this yr, nonetheless smaller than their chemical counterparts at $542bn, however the market is forecast to develop 35 per cent to $564bn by 2026, in line with analysis agency Consider Pharma.

However contract manufacturing of organic medication requires heavier investments and a demanding manufacturing course of that Lin stated was just like semiconductors as a result of it shouldn’t be contaminated by micro organism.

Samsung Biologics has additionally been on the acquisition hunt. It lately agreed to purchase Biogen’s 49.9 per cent stake of their three way partnership Bioepis for $2.3bn to bolster its biosimilar enterprise, which is seen as a stepping stone to its long-term purpose of creating its personal new medication.