South Korean contract development and manufacturing organization Samsung Biologics and Pfizer Inc PFE have signed two agreements for the long-term manufacturing of Pfizer's multiproduct biosimilar portfolio, worth $897 million.
The two deals include a $193 million deal and a $704 million deal - Samsung Biologics' most significant single contract since its inception in 2011.
Including a $183 million deal signed in March, the combined value of Samsung Biologics-Pfizer deals this year amounts to $1.08 billion.
Under the terms of the agreement, Samsung Biologics will provide Pfizer with additional capacity for large-scale manufacturing for a multiproduct biosimilar portfolio covering oncology, inflammation, and immunology.
Samsung will use its newest facility, Plant 4, for manufacturing, with an annual production capacity of 240,000 liters.
Currently, the company is also building Plant 5, which will be operational in April 2025, and is expected to add a capacity of 180,000 liters upon completion. The deals will last through 2029, Reuters reported.
Samsung Biologics celebrated the new orders as a growth in their strategic collaboration, stating that this year's total contracts have already exceeded last year's annual contract volume, according to the report.
In a move announced in March, Samsung Biologics disclosed a plan to spend 2 trillion won ($1.54 billion) by September 2025 to construct a new factory in South Korea.
Price Action: PFE shares are up 0.05% at $36.67 during the premarket session on the last check Wednesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
