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Samsung Biologics inks $1.29 billion deal as Korean biotech firms scramble amid Trump tariff threat

Published: 09 Sep. 2025, 18:27 Updated: 09 Sep. 2025, 19:08

Samsung Biologics' factory in Songdo, Incheon [SAMSUNG BIOLOGICS]

Samsung Biologics secured a major contract worth 1.8 trillion won ($1.29 billion) from a U.S.-based pharmaceutical company, Samsung Biologics’ second-largest contract since its founding.

This achievement comes amid growing uncertainty due to tariff pressure from the Trump administration, with the Korean bio industry expecting the contract to revitalize the industry as a whole.

Samsung Biologics lands mega deal

Samsung Biologics announced on Tuesday that it has signed a $1.29 billion contract manufacturing (CMO) agreement with a U.S. pharmaceutical company. It is the company’s second-largest order since its founding. The contract runs through Dec. 31, 2029, though the client and product were not disclosed.

In January, the company won its first major order of the year — a $1.41 contract with a European drugmaker. With the latest deal, cumulative orders this year have reached 5.24 trillion won, nearly matching last year’s record of 5.4 trillion won in just eight months. The company’s lifetime order total has now surpassed $20 billion.

Industry officials view the deal as a positive sign amid concerns that tariffs on pharmaceuticals and pressure to reshore operations could weigh on K-bio.

Samsung Biologics said its “world’s largest production capacity with 784,000 liters and proven regulatory track record with 382 approvals provided a competitive edge strong enough to offset tariff risks.”

A view of Lotte Biologics' Syracuse plant in New York [LOTTE BIOLOGICS]

Lotte Biologics builds U.S. momentum

Lotte Biologics also secured a CMO contract with a U.S. biotech firm earlier this month, though details of the client, product and contract size were not disclosed. The deal runs through 2030.

Lotte acquired Bristol-Myers Squibb's biologics plant in Syracuse, New York, in 2023, thereby gaining U.S.-based production capacity.

“We have successfully secured three contracts this year alone,” Lotte Biologics said. “Once the Incheon Songdo Bio Campus, scheduled for operation in 2027, is completed, we plan to operate the Korean and U.S. production facilities under a single quality system and actively pursue production contracts with U.S. pharmaceutical and biotechnology companies."

Celltrion's headquarters in Songdo, Incheon [CELLTRION]

Cha Biotech and Celltrion push ahead

Cha Biotech’s U.S. subsidiary, Matica Biotechnology, also reported a contract with U.S.-based Cirsium Biosciences for the development and production of adeno-associated virus vectors.

Matica, founded to expand into the U.S. cell and gene therapy CDMO market, built Korea’s first CGT facility in College Station, Texas, in 2022.

“We have already secured orders worth 10 billion won in the first half of this year,” the company said. “We expect to exceed our order target of 20 billion won by the end of the year.”

Celltrion, meanwhile, is preparing to finalize the acquisition of a U.S. plant from a global pharmaceutical company, having been named the preferred bidder in July. Once completed, Celltrion will be able to produce its key products in the United States, avoiding tariffs.

“Once we complete this plant acquisition, we will have secured the optimal facility in the United States for both economic feasibility and business viability,” said Celltrion. “We expect to increase further our market share of products sold in the United States by strengthening our competitiveness through reduced logistics costs and lower cost of sales ratios.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM KYUNG-MI [[email protected]]