(C) KBR

MARYLAND – Samsung Biologics (207940.KS) has officially entered the U.S. manufacturing landscape by acquiring a large-scale biopharmaceutical production facility from GlaxoSmithKline (GSK). This strategic move is aimed at insulating the company from looming U.S. pharmaceutical tariffs and strengthening its position amid shifting geopolitical regulations.

On December 22, Samsung Biologics announced that its U.S. subsidiary, Samsung Biologics America, signed a definitive agreement to acquire the Human Genome Sciences biopharmaceutical production facility in Rockville, Maryland, for $280 million (approximately 414.7 billion KRW). The transaction is expected to be finalized within the first quarter of next year.

The Rockville facility is a specialized Drug Substance (DS) plant with a total capacity of 60,000 liters. Comprising two manufacturing buildings, the site is equipped to support the entire production lifecycle of antibody drugs, from clinical stages to full-scale commercial manufacturing. With this acquisition, Samsung Biologics’ total global production capacity will reach a world-leading 845,000 liters.

As part of the agreement, Samsung Biologics will assume existing manufacturing contracts and retain the current workforce of approximately 500 employees. Coinciding with the acquisition news, the company disclosed three new Contract Manufacturing Organization (CMO) deals with a European pharmaceutical firm totaling 1.22 trillion KRW. These contracts, which run through 2030, are reportedly linked to the volumes integrated through the Rockville plant. This brings Samsung Biologics’ total annual orders for 2024 to 6.82 trillion KRW, a 26.1% increase from the previous year.

Industry analysts highlight that the acquisition effectively eliminates the 15% tariff risk recently imposed on imported medicines, as products manufactured domestically in the U.S. are exempt. Furthermore, the company is poised to benefit from the National Defense Authorization Act (NDAA), which restricts U.S.-funded entities from collaborating with certain Chinese biotech firms. "Securing a local plant is an optimal solution to navigate both tariff pressures and the complexities of the Biosecure Act," noted Oh Ki-hwan, director of the Korea Bio-Economic Research Center.

John Rim, CEO of Samsung Biologics, emphasized that the decision was a calculated move to bolster global healthcare stability. "This acquisition is a strategic commitment to strengthening U.S. manufacturing capabilities," Rim stated. "We will collaborate with federal and local governments to enhance supply chain stability and leverage the expertise of the local workforce to boost the facility’s competitiveness."

Moving forward, Samsung Biologics plans to operate a dual-track production system connecting its primary hub in Songdo, South Korea, with the new Rockville site. The company is also considering further investments to expand the facility’s capacity based on long-term market demand and the progress of new technical transfers and FDA certifications.

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