Samsung Biologics said it has signed a $242 million contract manufacturing organization (CMO) contract with Swords Laboratories, a subsidiary of Bristol-Myers Squibb (BMS), to manufacture immunotherapy treatment until 2030.

Samsung Biologics emphasized that this contract highlights the significant role Samsung Biologics' Plant 4 will serve over the next seven years as the primary production hub for BMS's flagship immunotherapies.

"BMS was the first client for Samsung Biologics since it started its CMO business, and the recent contract solidifies the partnership, which has been going on for over a decade since 2013," Samsung Biologics said. "The lasting relationship between the two companies can be attributed to our vast production capacity, ultra-fast manufacturing speeds, and consistent, high-quality outputs."

CEO John Rim's customer-centric approach, focused on swift responses to market demands and continual adaptation, has also been pivotal, it added.

Samsung Biologics stressed that with this competitive edge, the company has not only secured contracts with BMS but has also expanded its reach, currently serving 14 of the top 20 global pharmaceutical firms.

"Despite being a massive facility with a 240,000-liter capacity, the recently operational Plant 4 has seen an impressive utilization rate due to these substantial contracts, with the plant to post revenue from the upcoming third quarter," the company said.

Samsung Biologics CEO Rim also said, "Our relationship with BMS spans over a decade, and we are proud and excited to help bring important medicines to patients worldwide."

This collaboration with BMS underscores the company's commitment to expediting the delivery and ensuring the continuous supply of client pipelines, enabled by its commitment to manufacturing quality, innovation, and capacity, Rim added.

Annual accumulated order value hits record-high figures

Thanks to a series of ongoing large-scale agreements, including partnerships with major pharmaceutical companies like Pfizer and Novartis, Samsung Biologics has seen its annual accumulated order value soar to a record 2.7 trillion won ($2.3 billion), with expectations to surpass the 3 trillion won mark by year-end.

The company's contracts, typically executed in a minimum take or pay (MTOP) format, allow room for potential growth in both contract value and volume.

"Such ongoing growth mitigates prior market concerns of overcapacity, especially with the consistent influx of long-term contracts from global pharmaceutical leaders," the company said. "It brings a promising outlook for the company's currently under construction Plant 5."

Anticipating the surging demand for biopharmaceuticals, Samsung Biologics has been proactively investing in its production capabilities.

The company commenced construction of Plant 5 in April, which, upon completion in April 2025, will augment their total capacity to a staggering 784,000 liters, and maintain the biggest capacity in the world.