News
Article
Author(s):
The South Korean CDMO has signed its second multi-billion-dollar contract in less than a year, even as shifting US trade policies and looming tariffs create challenges for global drugmakers.
According to FirstWord Pharma, Samsung Biologics, a contract development and manufacturing organization (CDMO) based in South Korea, has inked a $1.3 billion production contract with a mega pharma partner in a deal that is expected to run until the end of 2029.1
A corporate filing noted that the company—who is not being named at this time—is based in the United States. The deal represents part II of massive deals for the CDMO within the last year alone: in January, the company signed a $1.4-billion contract with a European pharma manufacturer who was also unnamed.1
Samsung Biologics is pushing ahead with expansion despite trade headwinds. Considered one of the world’s largest CDMOs, the company now runs five plants with a combined capacity of 784,000 liters following the recent launch of its fifth Songdo facility. By 2027, production is expected to climb to nearly 1 million liters to keep pace with rising global demand from drugmakers.
The CDMO’s latest deal takes place during a time when the future of tariffs are in question. Last week, the Trump administration requested that the US Supreme Court hear out an appeal to overturn a previous ruling by a lower court declaring that a majority of the president’s tariffs are null and void.2
In a 7-4 decision, the US Court of Appeals for the Federal Circuit ruled that President Trump exceeded his power in enacting the import taxes on many countries across the globe.
“It seems unlikely that Congress intended, in enacting IEEPA [the International Emergency Economic Powers Act], to depart from its past practice and grant the President unlimited authority to impose tariffs," the court said at the time of the ruling.
The hearing is referring to when Trump decided to impose 25% tariffs on Mexican and Canadian imports—along with 10% on goods coming from China—to encourage these nations to act on limiting illegal immigrants and fentanyl from entering the United States.
The current reality is that tariffs on pharmaceuticals on a grander scale are expected to be forthcoming, although the White House did reach a deal that limits tariffs on pharmaceutical imports to 15% for the EU and 0% on generics for Japan.1-3 As part of that deal, Japan is vowing to make $550 billion worth of investments into the United States.3
A deal with South Korea, however, is yet to be official (or finalized for that matter), making this move would some argue a “risky” one due to the fact that the duties on imports that the country could be steep, especially on drugs.
The tariffs have encouraged many pharma manufacturers to begin reshoring their production efforts back to the US. Most recently Amgen announced4 that it would be financially committing upwards of $600 million into a new, state-of-the-art, science and innovation center at its global HQ in Thousand Oaks, CA.
"At Amgen, we're continuing to invest in the future of American science and innovation," said Robert A. Bradway, Amgen’s chairman and CEO. "This new center will empower our scientists with the tools and collaborative environment they need to shape the next era of scientific discovery and advance medicines that improve human health."
References
1. Bratulic A. Samsung Biologics Scores $1.3B US Contract Amid Trump Tariff Jitters. FirstWord Pharma. September 9, 2025. Accessed September 11, 2025. https://firstwordpharma.com/story/6059430
2. Saraceno N. Trump Pushes Supreme Court to Save Tariffs After Appeals Court Ruling Limits Presidential Power. Pharmaceutical Commerce. September 4, 2025. Accessed September 11, 2025. https://www.pharmaceuticalcommerce.com/view/trump-pushes-supreme-court-save-tariffs-appeals-court-ruling
3. Liu A. Trump Carves Out Generics From 15% Tariffs in US-Japan Trade Deal. Fierce Pharma. September 8, 2025. Accessed September 11, 2025. https://www.fiercepharma.com/pharma/trump-carves-out-generics-15-tariffs-us-japan-trade-deal
4. Saraceno N. Amgen to Invest $600M in New Science and Innovation Center at California HQ. Pharmaceutical Commerce. September 3, 2025. Accessed September 11, 2025. https://www.pharmaceuticalcommerce.com/view/amgen-to-invest-600m-in-new-science-and-innovation-center-at-california-hq
Stay ahead in the life sciences industry with Pharmaceutical Commerce, the latest news, trends, and strategies in drug distribution, commercialization, and market access.
