Over the past five years, Samsung Biologics has expanded its contract manufacturing business, adding 17 of the world’s top 20 pharmaceutical companies as clients. As a contract development and manufacturing organization (CDMO), the company develops and produces biopharmaceuticals for global drugmakers. Last year, Samsung Biologics reached a record revenue of 4.55 trillion won ($3.1 billion), becoming the first Korean pharmaceutical company to surpass 4 trillion won in annual sales. It is now the fourth-largest CDMO in the world.
Some worry that growing demand, especially due to U.S.-China trade tensions, could strain production capacity. However, in an interview with the Chosun Ilbo in Manhattan on March 19, CEO John Rim reassured, “Our fifth plant will be completed in April, and the sixth is in the final investment review stage,” he added. “No other company builds advanced factories as fast as we do,” suggesting a dramatic expansion of its production capacity. To further boost efficiency, Samsung Biologics is also investing in AI. “We have hired AI experts and plan to stay ahead as generative AI becomes more widely used across industries,” said Rim.
Since becoming CEO in December 2020 and securing a second term last year, Rim has outlined a “three-pillar expansion strategy” focused on increasing production capacity, diversifying the product portfolio, and expanding globally. He emphasized that building cutting-edge factories is one of Samsung Biologics’ key strengths, saying, “While competitors take four years to build a factory, we can do it in two.” The company’s new facilities will integrate advanced control systems to improve operational efficiency and data management.
Samsung Biologics has also been actively hiring AI experts to further improve production capabilities. Rim explained, “We are developing a ‘Golden Batch’ system using AI to analyze production data and optimize manufacturing.” Biopharmaceutical production is influenced by many variables, such as temperature and oxygen levels, making it difficult to achieve consistent results. By applying AI, the company aims to create a more consistent and reproducible production process.
Expanding into next-generation biopharmaceuticals is also a key part of the company’s strategy. Rim said, “We are already strong in large-scale antibody production and are investing in antibody-drug conjugates (ADCs) and cell & gene therapies.” He added, “A few years ago, there were concerns about overinvesting in antibodies, but now it’s clear the antibody market is still growing, with new treatments, like for Alzheimer’s, that were once unthinkable.”
One concern that global pharmaceutical companies have when outsourcing to South Korean firms is “stability.” Rim shared, “Clients often ask us seriously what would happen if North Korea were to attack.” To address this, Samsung Biologics has been exploring locations in the U.S. for the past three years to diversify its production bases. In addition to its operations in New Jersey, Boston, and San Francisco, the company plans to expand into Tokyo, Japan, as a key strategic base.
Employee turnover is another important factor for global clients before entering contracts. Rim explained, “For our clients, managing skilled and experienced staff is crucial for stable production and operations.” Samsung Biologics maintains a turnover rate of less than 3%, which is significantly lower than its competitors, whose turnover rates range from 5% to 15%.
The U.S. tariff policies introduced under the Trump administration are another challenge for the Korean biotech industry. Rim commented, “We are preparing several scenarios regarding U.S. tariffs in the biotech sector and will work with our clients to find the best solutions.”
