Samsung Biologics to Acquire First U.S. Drug Manufacturing Facility in $280M Deal

A South Korean biomanufacturing giant is set to purchase its first drug production facility in the U.S. for a sum worthy of its tech giant parent. 

Samsung Biologics’ American subsidiary will pay $280 million to acquire biopharmaceutical company Human Genome Sciences from GSK, in a deal expected to close early next year. The deal secures Samsung Biologics’ first manufacturing base in the U.S., at a two-building campus in Rockville, Md., with a combined 60,000 liters of capacity. 

Samsung Biologics is the world’s largest contract development and manufacturing organization (CDMO) by capacity, with 785,000 liters of current capacity across its two major biomanufacturing campuses in Incheon, South Korea. The company specializes in monoclonal antibodies, antibody-drug conjugates, mRNA therapies and next-generation treatments.

The Maryland industrial/life sciences campus at 9911 Belward Campus Drive will support the production of both clinical and commercial production of pharmaceuticals. Samsung Biologics is expected to retain 500 employees at the sites. The company also plans to further upgrade the facilities and bolster their production capacity. 

“This landmark acquisition is a testament to our unwavering commitment to advancing global healthcare and bolstering our manufacturing capabilities in the U.S.,” John Rim, Samsung Biologics president and CEO, said in a statement. “The investment will enable us to deepen our collaboration with federal, state and local stakeholders to best serve our customers and partners while ensuring a reliable and stable supply of life-saving therapeutics.”

The Maryland Life Sciences Corridor, between Rockville, Gaithersburg and East Baltimore — as well as the DMV in general — is among the country’s largest hubs of biotechnology development. Frederick, Md.-based developer Matan Companies earlier this month, for example, secured a 161,500-square-foot lease with Montgomery County Public Schools at the landlord’s two-building industrial/life sciences complex in Gaithersburg. Though it wasn’t immediately clear how the school system plans to use the facility.

AstraZeneca in July meanwhile announced a $50 billion boost to its U.S. investments by 2030. Chief among the pharma giant’s plans is a new $4.5 billion manufacturing facility in Albemarle County, Va., its largest ever built. AstraZeneca will also use the funds to expand its already 1.3 million-square-foot life sciences campus in Gaithersburg, not far from the property owned by Matan. GSK made a similar, $30 billion investment pledge in September. 

“Along with GSK’s recent commitment to invest $30 billion in R&D and manufacturing in the US over the next five years, the [Samsung Biologics] deal enables us to further focus on building the agility, capacity and capability needed in our manufacturing network to deliver the next generation of specialty medicines and vaccines. I am confident in a positive partnership and future for the Rockville site,” Regis Simard, GSK’s president of global supply chain, said in a statement.

Nick Trombola can be reached at ntrombola@commercialobserver.com.