Samsung looks to expand CDMO biz with $22bn investment

Samsung-looks-to-expand-CDMO-biz-with-22bn-investment.jpg
(Image: Getty/ma-no) (Getty Images/iStockphoto)

Samsung plans to invest KRW 180 trillion into its various businesses over the next three years, including in biomanufacturing-focused Samsung BioLogics.

Led for the most part by Samsung Electronics, the investment is designed to boost “businesses that will drive future growth”, including in artificial intelligence, 5G, automotive electronic parts, and biopharmaceuticals. Of the KRW 180 trillion dedicated to investments in technology, more than two thirds will be spent in South Korea.

According to the firm, both its contract development and manufacturing organisation (CDMO) Samsung BioLogics and biosimilar business Samsung Bioepis have seen strong growth. The company will “continue to invest heavily in the businesses, including developing and manufacturing biosimilars to combat chronic and difficult-to-cure diseases,” the firm said in a statement.

Samsung BioLogics will benefit from an undisclosed percentage of the $22bn investment, we were told.

“We do not have detailed plant how to use the money, but I can imagine additional expansion of facilities as well as the CDMO business,” said the spokesperson.

Samsung BioLogics has made a number of significant investments in manufacturing facilities of late, including in its third and largest plant, which was completed in December last year. Most recently, the CDMO announced US license approval to create a monoclonal antibody (mAb) at its Plant 1 facility in Incheon, South Korea.

Employment boost

Samsung also announced the investment will create 40,000 new jobs over the next three years.

“This includes generating up to 20,000 additional new jobs on top of previous hiring plans, reflecting Samsung’s commitment to support youth employment.

“Along with the direct employment, the investment in Korea is expected to help induce approximately 700,000 jobs in related industries and businesses,” according to the firm.

This article has been updated to clarify that KRW 180 trillion of the total sum will be invested in technology.