Pfizer and Samsung Biologics ink biosimilars manufacturing deal

Samsung Biologics, the South Korean contract development and manufacturing organisation (CDMO), has entered into a strategic partnership for the long-term commercial manufacturing of Pfizer’s multi-product biosimilars portfolio. 

Under the deal, Samsung Biologics said it will provide Pfizer with “additional capacity for large-scale manufacturing of a multi-product biosimilars portfolio covering oncology, inflammation, and immunology.” 

The contact is valued at some $411 million, according to a company filing. It follows an initial manufacturing agreement inked between Samsung Biologics and Pfizer in March 2023 for a Pfizer product.

The biosimilars manufacturing will be carried out at the CDMO’s newest facility, Plant 4, located in Songdo, South Korea. The 240,000 litre biomanufacturing plant was completed earlier in June 2023, which holds the world’s largest manufacturing capacity at a single site. 

As of 3 July 2023, Samsung Biologics and Pfizer have signed two agreements for the long-term manufacturing of Pfizer’s multiproduct biosimilar portfolio, worth $897 million in total. The products will be manufactured at Plant 4.

Deal 1: This involves an amended agreement of a deal initially signed in March 2023. This was announced to be increased by $193 million, in a letter of intent (LOI) publicised on 8 June.

Deal 2: An additional agreement (based on another LOI announced on 8 June) with an increased contract amount now worth $704 million. This is an increase of $486 million from 8 June. This makes the deal the largest single contract awarded to the company to date. These deals last through 31 December 2029.

“We are pleased to extend the strategic collaboration with Pfizer as we share and support their strong vision to bring innovative solutions for patients around the globe,” said Mike McDermott, Chief Global Supply Officer, Executive Vice President, Pfizer, commenting on the biosimilars manufacturing deal. 

“Our collaboration with Samsung Biologics will have the potential to significantly improve the lives of patients globally,” added Dong-Wook Oh, Pfizer Korea Country Manager.

In a separate announcement made at the 2023 BIO International Convention this week, Samsung Biologics, confirmed plans for its next facility – Plant 5 – to be fully operational by April 2025, several months earlier than planned. The 180,000-litre facility marks the first phase of the CDMO’s second Bio Campus, which will feature an innovation centre and four manufacturing plants with a total capacity of 720,000 litres. 

In March 2023, Samsung Biologics’ president and CEO John Rim announced plans to invest $1.5 billion in Plant 5 “given the continuing increase in the demand for outsourced manufacturing of biopharmaceuticals”. Regulatory filings show Samsung Biologics has inked new deals worth $1.5 billion so far in 2023. This compares to the $0.4 billion recorded in the first half of 2022.