November 30, 2024

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Samsung Biologics’ Plant 3 (Samsung Biologics)

Samsung Biologics has tentatively signed a deal worth 457 billion won ($350 million) with AstraZeneca on contract manufacturing, the company said in a regulatory filing Friday.

The two sides reached the agreement in May last year, but was unveiling it this time as they were renewing the contract to include “increases in demand” from AstraZeneca.

The renewed deal accounts for 29 percent of Samsung Biologics’ total sales in 2021, which was approximately 1.5 trillion won.

The company will release the full information of the deal after signing the main contract, it said.

The deal is reported to be the largest order ever. Samsung Biologics’ previous largest CMO deal had been with GlaxoSmithKline in August 2020, valued at 439 billion won.

Samsung Biologics produces AstraZeneca’s Ibushield, a COVID-19 antibody injection used for severe immunodeficiency patients who are unable to form antibodies well. The South Korean CMO also manufactures AstraZeneca’s immuno-cancer drug Imfinzi.

By Lee Yoon-seo (yoonseo.3348@heraldcorp.com)