Under the agreements, Samsung Biologics will manufacture biosimilar products ranging from oncology and inflammation to immunotherapy in the period to 2029 at its new plant in South Korea
Samsung Biologics’ Plant 4. (Credit: Samsung Biologics)
South Korea-based Samsung Biologics, the biotech division of the Samsung Group, has announced two deals worth a combined $897m to produce products for the US pharmaceutical giant Pfizer.
Under the agreements, Samsung Biologics will manufacture biosimilar products ranging from oncology and inflammation to immunotherapy for Pfizer until 2029 at its new plant in South Korea.
According to Samsung’s biotech division, the latest order takes the total amount of orders for this year from Pfizer to $1.08bn.
The deal includes a $704m contract, which is said to be the biotech’s biggest single contract since its foundation in 2011. The deal was earlier valued at $411.4m at the time of signing the letter of intent last month.
Pfizer increased the amount as it intends to boost its order of drugs for tumours, inflammation, and autoimmune diseases.
The other deal, valued at $193m, is the extension of a $182.7m agreement it signed with the pharmaceutical major in March.
Both firms did not disclose any information on the types of pharmaceutical products involved.
The biotech firm will produce the biosimilars at its fourth plant in Songdo, Incheon, South Korea. The plant is said to have an annual production capacity of 240,000 litres.
Samsung Biologics welcomed the orders as an expansion of a strategic alliance and said that the total number of contracts it has signed this year has already surpassed the last year’s annual contract volume.
Additionally, Samsung Biologics secured agreements with global pharmaceutical firms like Eli Lilly Kinsale and GlaxoSmithKline earlier this year.
In March this year, the company unveiled its plans to invest $1.54bn in the construction of a new plant in South Korea by September 2025.