Samsung Biologics Secures $1.3B Manufacturing Deal Amid Global Trade Tensions

South Korean contract development and manufacturing organization (CDMO) Samsung Biologics has inked a significant $1.3 billion manufacturing agreement with an undisclosed U.S. pharmaceutical company, highlighting the resilience of international partnerships in the face of ongoing trade uncertainties.

Deal Details and Industry Impact

The contract, set to run through December 31, 2029, represents Samsung Biologics' second-largest agreement since its founding in 2011. Valued at approximately 1.8 trillion Korean won, the deal underscores the company's growing prominence in the global CDMO market.

This latest partnership follows a string of high-value contracts for Samsung Biologics, including a $531 million agreement signed in May 2025 and a $1.2 billion deal secured in October 2024. The company's ability to consistently attract major contracts has contributed to its strong financial performance, with Q2 2025 revenues increasing by 11% year-over-year to 1.29 trillion won ($936 million).

Global Manufacturing Landscape and Korean CDMOs

Samsung Biologics is not alone in its pursuit of U.S. partnerships. Other Korean manufacturers, including Lotte Biologics and Cha Biotech's U.S. CDMO arm Matica Biotechnology, have also secured significant stateside production deals in 2025.

Lotte Biologics, which expanded its U.S. presence in early 2023 with the acquisition of a former Bristol Myers Squibb plant in East Syracuse, New York, recently announced a commercial manufacturing deal with an unnamed U.S. pharmaceutical company. The agreement, set to run through mid-2030, focuses on the production of a late-stage asset advancing into multiple new indications.

Meanwhile, Matica Biotechnology has entered into an agreement with Cirsium Biosciences to support the production of plant-based adeno-associated virus vectors, further diversifying the range of services offered by Korean CDMOs in the U.S. market.

Industry Outlook and Challenges

Despite the Trump administration's pharmaceutical tariff threats and ongoing trade tensions, the continued influx of international manufacturing deals suggests that many U.S. companies remain committed to global partnerships. Samsung Biologics, in particular, has cited its expansive production capacity and track record of success as factors that "provide a competitive edge strong enough to offset tariff risks."

As the pharmaceutical manufacturing landscape continues to evolve, companies like Samsung Biologics are exploring opportunities for further expansion. The CDMO has indicated interest in establishing a U.S. manufacturing site, which could potentially mitigate some of the concerns surrounding international production and trade uncertainties.

The pharmaceutical industry's resilience in the face of global challenges is evident in the ongoing collaborations between U.S. companies and international CDMOs. As these partnerships continue to flourish, they are likely to play a crucial role in shaping the future of drug development and manufacturing on a global scale.