Samsung Biologics is making significant strides in the global CDMO market, rapidly catching up with industry leader Lonza. While Samsung Biologics achieved record-breaking sales, Lonza experienced a decline, presenting a contrasting picture of the two companies' recent performance.
According to electronic disclosure systems, Samsung Biologics recorded KRW 4,547.3 billion in consolidated sales and KRW 1,320.1 billion in operating profit last year (2024). This marks the first time a Korean pharmaceutical and bio company has surpassed the KRW 4 trillion mark in sales.
Sales increased by 23% and operating profit by 19% compared to the previous year. On a separate basis, sales reached KRW 3,497.1 billion and operating profit KRW 1,321.4 billion, up 19% and 10% respectively year-on-year.
Samsung Biologics secured three contracts worth over KRW 1 trillion each in major global markets such as the US, Europe, and Asia last year, exceeding KRW 5 trillion in cumulative annual orders for the first time.
The company's cumulative order total since its inception is approximately USD 17.6 billion (approximately KRW 25.3 trillion), and it has 17 of the top 20 global pharmaceutical companies as clients. It maintains close partnerships to ensure a stable supply.
In contrast, Lonza underwent restructuring, including streamlining underperforming businesses. Lonza reported sales of approximately KRW 10,510 billion and operating profit of KRW 1,540 billion last year.
Lonza's sales decreased by approximately 2.1% compared to the previous year, while operating profit increased by 9.5%. While Samsung recorded growth rates approaching 20%, Lonza's sales declined, highlighting the contrasting fortunes of the two companies.
Despite remaining the world's leading CDMO company in terms of sales, Lonza is facing challenges due to the discontinuation of its vaccine partnership with Moderna and declining profitability in its capsule and health ingredient businesses. As a result, it is focusing on business restructuring and expanding its ADC (antibody-drug conjugate) capabilities.
Meanwhile, Samsung Biologics is poised to surpass Lonza in terms of production capacity this year.
Samsung Biologics's fifth plant at its second bio campus (plants 5-8) is scheduled for completion in April. Upon completion, it will have a total production capacity of 784,000 liters, surpassing Lonza's 780,000 liters. By 2032, with the completion of the eighth plant, it will have a capacity of 1.32 million liters, dwarfing Lonza and competitors such as WuXi Biologics of China and Fujifilm of Japan.
Like Lonza, Samsung Biologics is expanding its CDMO portfolio from existing antibody-focused to ADC. Its ADC plant, completed at the end of last year, will begin production this month.
The company is also expanding its global presence. It operates sales offices in Boston, New Jersey, and other locations in the US, and opened a sales office in Tokyo, Japan last year to strengthen partnerships with customers in Asia, including Japan.
This year, Samsung Biologics has continued its impressive performance, securing a record-breaking contract worth approximately KRW 2 trillion with a European pharmaceutical company at the start of the year.
Ha Hyun-soo, a researcher at Yuanta Securities, said, "Samsung Biologics already produces antibodies for ADCs, and its dedicated ADC facility will be operational from February, enabling it to provide full-process services from ADC antibodies to DP (drug product) production."
He also predicted, "Samsung Biologics plans to expand its PFS CMO orders, starting with Asia. Demand for PFS (pre-filled syringe) formulations is also expected to increase due to the growing demand for GLP-1 mechanism obesity treatments and the emergence of various antibody treatments such as TL1A (tumor necrosis factor-like ligand 1A protein)."
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