Source Fact: Financial Supervisory Service DART / 2024-10-22
Disclosure Type: Conclusion of Single Sales/Supply Contract
💡 3-Second Summary
Samsung Biologics has signed a contract manufacturing organization (CMO) agreement worth approximately KRW 1.70T (USD 1.24B) with an Asian-based pharmaceutical company, representing over 46% of its annual revenue in an ultra-long-term deal extending through 2037.
📊 1. [Summary of Core Disclosure & Key Figures]
- Contract Name: Contract Manufacturing Agreement (Pharmaceuticals)
- Contract Amount: KRW 1,702,804,224,000 (Fixed amount: USD 1,242,560,000)
- Applied FX Rate: KRW 1,370.40 per USD (Based on the initial standard proxy rate on October 22, 2024)
- Ratio to Recent Sales: 46.09% of the 2023 consolidated annual revenue (KRW 3.69T)
- Counterparty: A pharmaceutical company located in Asia (Identity remaining confidential until December 31, 2037, due to trade secrecy)
- Contract Period: October 22, 2024 ~ December 31, 2037 (An ultra-long-term deal spanning roughly 13 years)
- Execution (Order) Date: October 22, 2024
📈 2. [Expert Insight: Implications for Investors]
- Unprecedented Fundamental Scale-Up: With a single contract surpassing the KRW 1.7T threshold and accounting for nearly half (46.09%) of the company’s entire annual revenue baseline, this massive deal acts as a historic momentum shift that dramatically enhances mid-to-long-term earnings visibility and structural Fundamental.
- Securing Ultra-Long-Term Production Backlog: Spanning approximately 13 years until late 2037, this contract provides an exceptionally durable anchor for the order book. It is highly likely to exert a positive impact on insulating utility risks and safeguarding baseline utilization rates for existing mega-plants as well as upcoming facility pipelines.
- Investor Consideration: Since the fixed contract value is pegged in USD (approx. USD 1.24B), the actual recognized revenue in KRW may undergo unexpected fluctuations depending on currency trends at the time of future delivery. Additionally, given the strict confidentiality requirements common in commercial biologics, the client’s identity will remain hidden for over a decade, requiring market participants to navigate this structural information asymmetry.
📝 Editor’s Comment (by K-STOCK Editor)
Samsung Biologics has just unleashed an absolute monster of a deal, scoring a historic KRW 1.7 trillion megahit! Locking in nearly 50% of its entire annual revenue in one single contract is a phenomenal showcase of global scale. What makes this even more explosive is the horizon—the contract runs all the way out through 2037. This guarantees an immense, long-term cash flow stream for the next 13 years. While the counterparty is designated strictly as an Asian-based pharmaceutical company and its specific corporate profile or market cap remains completely masked under tight wraps, the sheer volume of this multi-year deal provides a definitive backlog expansion that cements Samsung Biologics’ production visibility in the global market.
📢 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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