Samsung BioLogics, the contract drug manufacturing arm of South Korea’s Samsung Group, announced Tuesday that it has signed a long-term manufacturing deal valued at $55.5 million with Indian pharmaceutical giant Sun Pharma.

The two companies sealed the partnership during a ceremony at the Samsung BioLogics headquarters in Incheon on Tuesday.

Under the deal, Samsung BioLogics will manufacture Sun Pharma’s investigational drug tildrakizumab, an IL-23p19 inhibitor currently under review by US and European drug regulators for the treatment of moderate to severe plaque psoriasis.

Though the given deal is currently estimated at $55.5 million, this customarily signifies the minimal order volume. In other words, additional orders for the drug could be placed depending on demand for the drug upon its commercialization.


“Samsung BioLogics is pleased to join hands with Sun Pharma and is looking forward to delivering best-in-class manufacturing services with global quality standards,” said Samsung BioLogics CEO Kim Tae-han in a statement.

“Our collaboration with Sun Pharma is an important milestone for Samsung, as it is a testament of our ability to provide reliable supply through its GMP-certified manufacturing facility to pharmaceutical companies, which aim to expand their global market,” Kim said.

Sun Pharma marks Samsung BioLogics’ seventh contract manufacturing client to date. Six other global pharma companies, including Roche, Bristol-Myers Squibb and Samsung Bioepis, have already signed manufacturing deals for nine products with Samsung BioLogics.

On Tuesday, news of the new contract led Samsung BioLogics shares to soar to the day’s high of 291,000 won ($253.19) before closing at 289,000 won, up 3.03 percent from the previous trading day.

Listed on Korea’s main bourse Kospi, Samsung BioLogics currently produces live cell-based biologic drugs on behalf of its clientele of global pharmaceutical companies.

The Songdo-based company is spearheading Samsung Group’s push into biopharmaceuticals as the Korean tech conglomerate seeks success in new, promising industries beyond its flagship electronics business.

Since its foundation in 2011, Samsung BioLogics has risen as a formidable player in the global drug manufacturing business. Upon the completion of its third plant in Songdo, Samsung BioLogics’ net production capacity will rise to 362,000 liters, making it the world’s biggest contract drug manufacturer by capacity.

In addition to drug manufacturing, Samsung BioLogics has two subsidiaries, Samsung Bioepis and Archigen Biotech, dedicated to the development of biosimilars, which are cheaper, near-replicas of biologic drugs that have lost patent protection.

By Sohn Ji-young (jys@heraldcorp.com)