Samsung Biologics' Growth Is Propelled by Demand for Contract Manufacturing

Unlike other global contract manufacturing organizations, Samsung Biologics differentiates itself by focusing on biologics modalities. Biologics are large molecule treatments made from living cells with a higher degree of complexity compared with traditional chemically synthesized small molecule drugs. Biological products include antibodies, vaccines, gene therapies, and many other novel treatments, which are the focus of research and development spending for largely unmet medical needs. Given the interest in this pharmaceutical area, Samsung Biologics’ revenue has expanded at a compound annual growth rate of 48.5% for the past 9 years. We think Samsung Biologics can still enjoy the secular tailwind in demand for biologics in the next decade.