Samsung Biologics, which surpassed 6 trillion won in annual orders for contract development and manufacturing (CDMO) of biopharmaceuticals last year, is reviewing the possibility of expanding investment, including pushing ahead with construction of a sixth plant and strategic mergers and acquisitions (M&A).
By building the third bio campus in Songdo, Incheon, expanding its U.S. production base, and boosting its contract development (CDO) capabilities, the company aims to leap from a global top-tier CDMO to a contract research, development and manufacturing organization (CRDMO).
John Rim, CEO and president of Samsung Biologics, said in a main track presentation at the 44th JPMorgan Healthcare Conference (JPMHC 2026) held at The Westin St. Francis in San Francisco on the 13th (local time), "To rise as a global top-tier contract development and manufacturing (CDMO) corporations, we will accelerate our three-pillar expansion strategy focused on production capacity, portfolio, and global hubs."
With the final passage last month of the U.S. Biosecure Act, which includes restrictions on transactions with Chinese life sciences corporations, expectations are growing in the investment market and industry that Korean bio corporations could benefit by filling the gap left by Chinese corporations. The event offered a look at Samsung Biologics' strategy to seize new opportunities.
◇ "Production capacity to expand to 845,000 liters… considering a sixth plant"
Rim cited "completion of the spin-off" and "securing a U.S. production hub" as the company's key achievements last year. Samsung Biologics separated Samsung Bioepis to establish a pure CDMO structure. Along with securing the site for the third campus in Songdo, it acquired a plant in Rockville, Maryland, from GSK plc, establishing its first overseas production base. The acquisition transaction is expected to be completed within the first quarter of this year.
The production capacity of Plants 1 through 5 in Songdo is about 785,000 liters, and upon completion of the Rockville plant acquisition, global capacity will expand to 845,000 liters.
The company is also reviewing pushing ahead with construction of a sixth plant within the Songdo Second Bio Campus and expanding its U.S. production facility to a 100,000-liter scale. Rim said in a meeting with reporters, "The Rockville plant in the U.S. can be expanded by an additional 20,000–40,000 liters from about 60,000 liters currently," adding, "We plan to seek not only stabilization of Rockville plant operations but also additional expansion opportunities."
Rim said, "By expanding production and sales hubs in the U.S., we are increasing customer access and also looking at various investment opportunities, including strategic M&A." The explanation is that it is actively reviewing opportunities for inorganic growth, such as acquiring corporations or production facilities and investing in technology companies with next-generation modalities.
On the possibility of building a sixth plant in Songdo, he said, "We are waiting for a trigger point," adding, "Plant 5 is ramping up quickly, and preparations are almost complete." He said, "Once we get board approval, we can break ground (on Plant 6)," adding, "A decision could be made this year."
The company plans to invest about 7 trillion won by 2034 in the site for the third bio campus secured at the end of last year to build research and production facilities for various modalities, including Antibody-Drug Conjugate (ADC), antibody vaccines, and cell and gene therapies (CGT). Rim said, "To respond swiftly to diverse customer needs, we plan to review expanding ADC production capacity and adding small- to mid-scale reactors."
Samsung Biologics plans to secure customer trust by applying its optimized production system "ExellenS™" to ensure consistent processes and quality anywhere in the world. ExellenS™ is the CDMO service brand the company unveiled in Oct. last year, embodying its commitment to supply clients with consistently high-quality medicines quickly and efficiently, with Equivalency and Speed as core values.
◇ "Aiming for new opportunities in contract development"
Expanding the contract development (CDO) area is also a core strategy. The company signed 31 CDO contracts last year and said it will launch master cell bank (MCB) and vector design and production services in February.
MCB is central to biopharmaceutical production: the final cell line that best produces the target protein is mass-cultured, then dispensed into numerous vials and stored frozen. Through this, the company plans to strengthen its "end-to-end development" capabilities that provide integrated support across the entire development process from new drug candidate research to commercial production.
Earlier in June last year, it launched "Samsung Organoid," expanding into the clinical research organization (CRO) area using artificial organs.
In terms of portfolio (business areas), the company plans to strengthen CRDMO capabilities encompassing CRO, CDO, and CMO to provide end-to-end services across the entire drug development cycle. Rim said, "Through the open innovation center to be established in the Songdo Second Bio Campus, we plan to expand collaboration with promising biotechs."
Regarding the modality (drug delivery technology) strategy, Rim said, "ADC can begin its first commercial production in 2026," adding, "Once the drug product (DP) ADC plant is completed in the first quarter of 2027, end-to-end production will be possible."
On the tariff issue, he explained, "Through consultations between Korea and the U.S., the maximum tariff rate was set at 15%, and customers from countries with most-favored-nation (MFN) agreements have no tariff burden when importing from Korea to the U.S."
The company also presented a digital transformation (DX) strategy, including building an intelligent manufacturing environment using artificial intelligence (AI) and Digital Twin technology and improving data-based operational efficiency. Samsung Biologics is applying AI to deviation report analysis, bioreactor efficiency optimization, and resin life cycle management. Rim said, "We introduced electronic batch records (EBR) at Plant 5 for the first time and will upgrade to 2.0 by year-end," adding, "Quality and efficiency will rise simultaneously."