Samsung Biologics has achieved a major milestone, reporting over 3 trillion won in cumulative sales during the first three quarters of 2024, marking the highest in the company’s history. The impressive growth reflects the success of Samsung’s “super-gap” strategy, which has strengthened its position in the global biopharmaceutical contract development and manufacturing (CDMO) market.
According to the company, Samsung Biologics’ sales for the first nine months of 2024 reached approximately 3.29 trillion won, a 25.55% increase from the same period last year. Operating profit also surged by 30.2%, reaching 994.3 billion won. In the third quarter alone, sales rose by 15%, with a 6% rise in operating profit year-over-year.
This growth was driven by a steady flow of contract manufacturing orders and increased sales of biosimilar products from its subsidiary, Samsung Bioepis. With these trends, Samsung Biologics is expected to surpass 4 trillion won in annual sales for 2024, breaking its previous record. On Oct. 23, the company revised its annual revenue forecast upward, from 4.16 trillion won to 4.34 trillion won.
Since its founding in 2011, when Samsung identified biotechnology as a key future growth industry, Samsung Biologics has rapidly expanded. At the time of its IPO in 2016, annual sales were approximately 300 billion won, but they have since grown more than 14 times, now exceeding $15.4 billion in total accumulated orders.
Samsung Biologics is also expanding its global client base, now serving 17 of the world’s top 20 pharmaceutical companies by market capitalization—an increase from 14 last year.
Samsung Biologics’ remarkable growth stems from bold investments aimed at increasing production capacity and enhancing quality. Anticipating rising global demand for biopharmaceuticals, the company has steadily built out its production capabilities. It began with its first plant (30,000 liters) in 2011, followed by the second (154,000 liters) in 2013, the third (180,000 liters) in 2015, and the fourth (240,000 liters) in 2020. These expansions have allowed Samsung Biologics to become the global leader in production capacity by 2022, and it continues to widen the gap with competitors through its aggressive “super-gap” strategy.
Samsung Biologics is currently building a fifth plant, with a capacity of 180,000 liters, set to begin operations in April 2025. CEO John Rim announced last year that the company would expedite the plant’s opening, originally scheduled for September 2025, to further strengthen its production lead.
When completed, the fifth plant will bring Samsung Biologics’ total capacity to 784,000 liters, a dominant figure in the industry. The company plans to continue expanding, with additional plants expected to push total capacity to 1.32 million liters by 2032.
In addition to increasing production, the company is diversifying its portfolio. Samsung Biologics is moving beyond traditional antibody drugs into new areas such as antibody-drug conjugates (ADCs), a cutting-edge cancer treatment technology that precisely targets cancer cells. A dedicated ADC production facility, expected to be completed by December 2024, will include a 500-liter conjugation reactor and a purification line, positioning the company to offer next-generation therapies.
To further enhance its capabilities in ADC-related services, Samsung Biologics has invested through the “Samsung Life Science Fund,” which it co-established with Samsung C&T, Samsung Bioepis, and Samsung Venture Investment. The fund has invested in promising ADC technology firms such as Araris Biotech and AIMEDBIO, strengthening the company’s ability to provide comprehensive services to its clients.
Samsung Biologics is also investing in new modalities, or drug delivery technologies. In July, the company invested $52.23 million in the “Flagship Pioneering Fund VIII,” which focuses on AI-driven drug development platforms, signaling its commitment to innovation in biopharmaceuticals.
Looking forward, Samsung Biologics plans to grow into a global biotech leader through a three-pronged strategy: expanding production capacity, diversifying its portfolio, and broadening its global presence. The company is also exploring inorganic strategies, such as mergers and acquisitions, to rapidly acquire technologies and capabilities that would otherwise take longer to develop internally.
