Samsung Biologics has signed an initial $81 million contract manufacturing and development deal with Novartis, marking the first time the two companies have worked together.
Samsung Biologics revealed the deal in a regulatory filing Monday. The company didn't disclose which of Novartis' medicines it'll be working on, although Samsung said it will share additional details in the future.
The deal represents 6.4% of Samsung Biologics’ 1.57 trillion South Korean won ($1.25 billion) in annual sales last year, the regulatory filing said.
Working as a manufacturing partner for Novartis fits well in Samsung Biologics' aggressive plans to expand its CDMO aspirations.
Earlier this year, the company announced a three-pronged approach to growth in the field through boosting capacity, diversification of its portfolio and increasing its footprint outside of South Korea.
Meanwhile, the company has been gaining momentum on multiple fronts. In the fourth quarter of 2021, the company grew revenues 18% to 444.3 billion South Korean won (about $371 million). The CDMO reaped about 1.57 trillion South Korean won (some $1.31 billion) for the year.
Additionally, the company in April said its new "Super Plant" in Korea will be ready six months ahead of schedule. The company also said it snapped up an additional 350,000 square meters of land to increase the size of its current campus by 30%.