Samsung Biologics Co. secured a 1.8 trillion won ($1.3 billion) manufacturing contract from an unnamed US pharmaceutical company, marking the South Korean drugmaker’s second-largest deal on record as trade tensions continue to cloud industry prospects.
The contract, extending through 2029, brings Samsung Biologics’ total 2025 orders to 5.2 trillion won ($3.8 billion), nearly matching the company’s entire 2024 tally in just eight months, according to a Tuesday filing. The Incheon-based manufacturer has accumulated over $20 billion in cumulative orders since its 2011 founding.
The deal demonstrates continued demand for Samsung Biologics’ services despite pharmaceutical companies facing potential US tariff rates as high as 250% under the Trump administration’s trade policies. While South Korea negotiated a trade agreement capping general tariffs at 15%, pharmaceutical products remain under separate investigation for additional duties.
Samsung Biologics, the world’s largest contract development and manufacturing organization with 784,000 liters of production capacity, has signed several major agreements this year including a record $1.4 billion European contract in January. The company plans to expand capacity to 964,000 liters by 2027.
The latest contract follows Samsung Biologics’ aggressive expansion into antibody-drug conjugates and contract research services as it seeks to diversify beyond traditional manufacturing. However, the company’s growth trajectory faces headwinds from escalating trade disputes that could reshape pharmaceutical supply chains.
