Source Fact: Financial Supervisory Service DART / 2024-06-18
Disclosure Type: Conclusion of Single Sales/Supply Contract (Amendment)
💡 3-Second Summary
Samsung Biologics has amended its 2017 contract manufacturing organization (CMO) agreement, increasing the contract value from the initial KRW 16.8B to KRW 250.9B (USD 223.01M) and disclosing the client’s identity and contract period through 2034.
📊 1. [Summary of Core Disclosure & Key Figures]
- Amended Original Disclosure: Conclusion of Single Sales/Supply Contract initially submitted on July 21, 2017
- Reason for Amendment: Modification of the contract value per the client’s request
- Contract Name: Contract Manufacturing Agreement (Pharmaceuticals)
- Changes in Contract Amount:
- Pre-amendment: KRW 16,810,505,600 (USD 14,944,000)
- Post-amendment: KRW 250,866,198,800 (USD 223,012,000)
- Net Increase: An expansion of USD 208,068,000
- FX Anchor: Fixed at KRW 1,124.90 per USD (The initial standard proxy rate on the original disclosure date of July 21, 2017)
- Ratio to Sales: Changed from 5.71% to 85.15% relative to the annual revenue baseline at the time of initial disclosure (2016 financial statement: KRW 294,622,020,774)
- Counterparty: Updated from “A pharmaceutical company located in the United States” to Baxter Healthcare Corporation
- Contract Period: July 20, 2017 ~ December 31, 2034
- Status of Disclosure Withholding: The disclosure withholding parameters (previously showing an expiration date of December 31, 2025) have been removed from the filing. The contract expiration timeline remains subject to potential adjustments based on mutual agreement.
📈 2. [Expert Insight: Implications for Investors]
- Scaling of Contract Value: This amendment records a modification to the contract parameters initially filed in 2017, reflecting a substantial upward adjustment in the total contract value to approximately KRW 250.9B. This expansion serves as a positive indicator for the company’s long-term operational Fundamental by securing a larger revenue track.
- Delineation of Production Timeline and Confidentiality Status: Setting the explicit contract expiration date to December 31, 2034, provides visible asset utilization continuity over the next decade. Concurrently, the update removes the previous confidentiality placeholder to name Baxter Healthcare Corporation, which resolves past structural information asymmetry for market participants tracking the deal.
- Investor Consideration: The updated contract value remains calculated using the historical 2017 currency anchor (KRW 1,124.90/$). Consequently, the actual realized revenue denominated in KRW may still undergo variations based on real-time exchange rates at the time of future manufacturing batches and delivery invoicing. Additionally, structural elements like the final termination date remain subject to adjustment via bilateral negotiations.
📝 Editor’s Comment (by K-STOCK Editor)
This amendment illustrates the scaling potential embedded within Samsung Biologics’ contract frameworks. What originally read as a KRW 16.8 billion order in 2017 has re-materialized into a contract exceeding KRW 250.9 billion following a contract modification requested by the client. This updated figure represents 85.15% of the firm’s documented 2016 revenue baseline. Listing Baxter Healthcare Corporation as the client, while simultaneously setting the contract period through 2034, improves structural visibility for plant capacity mapping over the coming decade. While real-time FX tracking will be necessary to gauge final 원화 conversion variances during invoicing phases, this filing stands as an example of expanding an existing customer relationship to support long-term commercial continuity.
📢 Disclaimer & Source Information
Source: This content was structured and newly generated based on official data submitted to the Financial Supervisory Service’s Electronic Disclosure System (DART).
Investment Risk Notice: This information is provided solely for informational and linguistic reference purposes. Under no circumstances does it constitute financial advice or a recommendation to buy or sell specific stocks. All investment decisions and financial liabilities rest entirely with the investor.
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