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Samsung Biologics US Expansion: Future Plans & Overseas Considerations
Samsung Biologics (now referred to as ‘The Company’) takes into account the construction of its bio plants in four states of the USA: California, Texas, North Carolina & Washington. It would be its first overseas production facility.
John Rim was appointed as the new Samsung Biologics CEO on DEC 20 and noted that major bio-arrays are located in these 4 states.
Incheon, a South Korean city bordering the capital of Seoul, has long been a transportation hub, where the company saw to acquire more land for its Plant in 4 expected to run in the Q2 of 2023. However, it could not be finished for reasons of the local elections where the company, Mayor & Commissioner of the free economic zone weren’t able to sign a contract.
Songdo International Business District is a smart city or “ubiquitous city” & “Private town, “where the company plans to build Plant 5 & plant 6 by the end of May if demand and supply are as expected. The company was established in 2011 and currently has three contract development and manufacturing organization (CDMO) plants in Songdo, Incheon, ranks it first place CDMO by capacity globally.CDMO develops a client’s products and also takes charge of mass production.
From 50 to 6000 employees in 2011 currently, The Company has a good professional record regarding CDMO’s fast operations for clients and completing deadlines.
“As of second quarter this year, we have accumulatively secured contracts worth $ 7.9 billion through 2028, but the figure could go up to strongest $ 12 billion or more .”
-John Rim
This statement suggests that the deals and acquisition possibilities are considered much more worthy.
According to the Rim, Samsung Biologics has readiness in the business & CES (Chief Engineering Services). Contract Developments & Manufacturing Organizations (CDMOs) competitors Lonza has been defeated by the company and has an advantage over others like Fuji and WuXi Biologics as it has confidence in its manufacturing facility, which can be erected and function in about 2 to 2.5 years.
Often dubbed as CES of biopharmaceuticals, The company placed a booth at BIO USA 2022 in San Diego from June 13 to 16.
John Rim also welcomed the native competition from another new entry & rival, Lotte, with its booth, as he pointed out it would prove beneficial for S.Korea and generate more growth.
No backing is available now; Rim requested support from Govt. for CDMO business.
John is also considering Ireland’s talks with the respective Government for constructing a plant there while keeping the US as a priority.
Emphasizing that ‘speed’ and ‘talented’ employees are the two edges of Samsung Biologics, said Rim in his first offline press conference with Korean reporters since he was appointed the CEO in December 2020 at BIO International Convention (BIO USA) on Monday.
“It normally takes four years to construct a facility, but we are nearly two times faster than our competitors; we have many young talented employees, and smart people largely contributed to the growth of Samsung Biologics.”
–John Rim.
John explained The company will start new drug development in the future but is also skeptical of the future of the cell and gene therapy industry, implying two further statements, respectively.
“Starting clinical trials does not mean anything; the success rate of developing a new drug stands at less than 10 percent, It is a very high-risk sector, and we definitely need a step-by-step approach.”
-Rim.
“Many companies worldwide have constructed their cell and gene therapy plants, and many of them are up for sale already as it is not yet a profitable sector. The time is not yet ripe for it.”
-Rim.
While securing companies like AstraZeneca, GlaxoSmithKline, Eli Lilly, and Moderna as customers
and signing deals of $7.9 billion until now. The Company also has many big global pharmaceuticals as clients.
Earlier in the year, Samsung Electronics announced to invest 450 trillion won ($350 billion)during the next five years in future businesses like SC, Foundry, and Biopharma.
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