Source Fact: Financial Supervisory Service DART / 2024-11-18
Disclosure Type: Conclusion of Single Sales/Supply Contract (Amendment)
💡 3-Second Summary
Samsung Biologics has revised its major contract manufacturing organization (CMO) agreement worth approximately KRW 605.3 billion with global pharmaceutical firm Roche, extending the contract expiration date by one year to the end of 2025 upon the client’s request.
📊 1. [Summary of Core Disclosure & Key Figures]
- Amended Original Disclosure: Single Sales/Supply Contract initially submitted on January 15, 2021
- Contract Name: Contract Manufacturing Agreement (Drug Substance Manufacturing)
- Counterparty: F.Hoffmann-La Roche Ltd (Roche)
- Contract Amount: KRW 605,330,045,000 (Fixed amount: USD 550,150,000)
- Applied FX Rate: Fixed at KRW 1,100.30 per USD (The standard proxy rate on the initial disclosure date of January 15, 2021)
- Note: There is no value change in this specific amendment; the current amount reflects a prior increase of USD 146,300,000 from the original USD 403,850,000 due to a surge in client demand.
- Ratio to Revenue: 86.28% relative to the revenue baseline at the time of initial disclosure (KRW 701.59B)
- Changes in Contract Period:
- Pre-amendment: June 1, 2020 ~ December 31, 2024
- Post-amendment: June 1, 2020 ~ December 31, 2025 (Extended by 1 year)
📈 2. [Expert Insight: Implications for Investors]
- Securing Operational Continuity: While this amendment does not bring an incremental increase in contract value, stretching the timeline through late 2025 ensures a steady production timeline for the designated volumes. This could potentially secure a positive impact on maintaining stable plant utilization rates through next year.
- Validation of a High-Impact Contract: This deal represents an immense 86.28% of the company’s historical revenue baseline. The fact that such an anchor contract remains fully intact and actively extended underscores the structural continuity of Samsung Biologics’ long-term business Fundamental.
- Investor Consideration: The primary driver for this amendment is listed as a “change in contract period per client request,” meaning the final timeline may still fluctuate depending on production schedules. Furthermore, the KRW denomination is locked into the historical 2021 FX rate (KRW 1,100.30/$), so the actual revenue recognized upon future invoicing may vary according to real-time currency fluctuations.
📝 Editor’s Comment (by K-STOCK Editor)
A major legacy contract with global big pharma anchor Roche has been secured through the end of next year. Although this amendment does not present a headline-grabbing value upgrade, ensuring that this KRW 605.3 billion project locks in a production runway through 2025 provides highly valuable operational visibility. In the commercial biologics CMO space, shifting timelines or rescheduling batches due to client inventory and clinical needs is standard practice. This extension indicates that both companies are smoothly aligning their supply chains, reinforcing that the core foundation of Samsung Biologics’ backlog remains rock-solid.
📢 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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