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[Song Young-doo, Edaily Reporter] Samsung Biologics CEO John Rim said the company will complete Plant 5 next month, securing the world’s largest production capacity and accelerating its growth as a top-tier contract development and manufacturing organization, or CDMO. With the construction of Plant 6, the company aims to expand its client base to the world’s top 40 pharmaceutical firms and sustain long-term growth.

Samsung Biologics CEO John Rim delivers a speech at the 14th annual general meeting held at Songdo Convensia in Incheon on March 14.(Photo by Song Young-Doo)

Samsung Biologics held its 14th annual general meeting March 14 at Songdo Convensia in Incheon. As chair of the meeting, Rim reviewed last year’s achievements and outlined the company’s 2024 growth plans.

“Despite challenging business conditions, including rapidly shifting global dynamics, Samsung Biologics delivered strong performance and continued to grow,” Rim said. “Through unwavering customer satisfaction, superior quality competitiveness, operational efficiency and the outstanding capabilities of our employees, we have earned the trust of global clients and are leading the CDMO market.”

He highlighted 2024 as a pivotal year for expansion. With the completion of Plant 5, the company will enter the era of its second bio campus and continue expanding its global footprint by leveraging its production capacity.

“In April, Plant 5 will mark the beginning of our second bio campus,” Rim said. “Once completed, our total production capacity will reach an industry-leading 784,000 liters, enabling us to respond to global biopharmaceutical production demands with greater speed and flexibility.”

Plant 5, with a capacity of 180,000 liters, is expected to serve as a key foundation for the company’s long-term expansion.

First Korean Pharma-Bio Firm to Surpass 5 Trillion Won in Sales

Following the completion of Plant 5, Samsung Biologics plans to construct additional facilities, including Plant 6(180,000 liters), Plant 7(180,000 liters) and Plant 8(180,000 liters), while also establishing an open innovation center to strengthen its position in the global CDMO sector. Industry experts expect an announcement on Plant 6’s expansion later this year, given the company’s increasing order volume and revenue.

The company is also expanding its global reach. “We will enhance our portfolio with new modalities such as antibody-drug conjugates, mRNA, and cell and gene therapies,” Rim said. “To strengthen communication with our clients, we have successfully established sales offices in Boston and New Jersey, and we plan to expand our Tokyo office this year to reinforce partnerships with Asian clients.”

To date, Samsung Biologics has secured contracts with 17 of the top 20 global pharmaceutical companies. The company aims to extend its client base to the top 40. By integrating artificial intelligence and automation robotics key competitive advantages in the global CDMO industry Samsung Biologics aspires to become a top-tier CDMO leader.

In 2023, Samsung Biologics recorded 4.55 trillion won in revenue, becoming the first Korean pharmaceutical-biotech company to surpass 4 trillion won in annual sales. This year, the company expects to generate more than 5.5 trillion won in revenue, placing it among the top 30 global pharmaceutical companies. This revenue level is comparable to that of Catalent, a leading U.S.-based CDMO with annual sales of approximately 5.4 trillion won. The company is also considering mergers and acquisitions as part of its long-term strategy to reach 10 trillion won in annual sales.

Shareholders Approve Six Proposals, Elect Former Presidential Policy Chief as Outside Director

During the meeting, shareholders approved six proposals, including the approval of financial statements, amendments to the articles of incorporation, the appointment of internal and external directors and audit committee members, and the approval of director compensation limits.

Yoo Seung-ho, head of the management support center, was appointed as an internal director, while Lee Ho-seung, former chief of policy at the presidential office, was appointed as an external director and audit committee member. Lee Chang-woo, professor emeritus at Seoul National University, was reappointed as an external director and audit committee chair.

“Our achievements are the result of our shareholders’ support and trust,” Rim said. “We ask for your continued interest and encouragement as we strive to become a top-tier global biopharmaceutical company.”