The two previous posts in the series introduced Samsung Biologics, a successful venture launched by a company in a completely different category. The second post described three key choices Samsung made that aided its success. This final post describes the scale of the results of Samsung’s entry into the CDMO marketplace.
As a CDMO supplier, Samsung is cutting across the marketspace to scale production. It has been rapidly expanding production from an early 160,000 LT production capacity to 364,000 LT, now to 620,000 LT, in the newest expansion to come online in 2022. The newest plant expansion is coming online 6-12 months early in response to global needs for Covid treatments and other conditions. The expansion of capacity will likely make Samsung Biologics the largest global CDMO biologic drug producer. A further plant expansion (Plant 5), started in 2022, will increase mRNA drug platform capacity. A Korean Government initiative for national strategic technologies will make pharma production, along with semiconductors and batteries, separately funded at $1.9B thru 2025. Samsung Biologics will be aided as a global Alien Invader by huge expansion of capacity, global demand, and government support.
In 2021 Samsung Biologics revenue was $1.31B with a 2020Q4 run rate of almost $1.5B.
Rapid production of new drugs, in response to Covid-19 or other needs, will drive expansion of Samsung Biologics revenue even as new plants are being constructed in advance of capacity needs. Samsung Biologics has positioned itself as a global pharma supply chain participant that can deliver faster than developing inhouse manufacturing capacity for pharma.
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