INCHEON, South Korea, June 4, 2019 /PRNewswire/ -- Samsung BioLogics (SBL) recently entered a new era by signing a "first of its kind" deal with a US biopharmaceutical company valued at $7.8 million US through 2020. The client is an early stage development company with a high potential early stage asset with a requirement to ensure stable and consistent supply for its clinical trials and commercialization.
Under the terms of the contract, the deal will increase to $39.8 million US when the client progresses development of the clinical product, and will increase to $301 million US when the client obtains approval for the product. The minimum committed amount can be additionally increased based on actual product demand.
From the outset, Samsung BioLogics worked closely with the client in order to understand their needs. This allowed Samsung to come up with a flexible and client-centric deal that maximizes value creation for the client through multiple phases of clinical trials through to commercialization. The deal has been structured such that the client only has to make commitments for each individual clinical trial phase, thus minimizing the cash requirements for the client and protecting them from extensive financial liability in case the product does not advance to the next stage of development. The agreement also has automatic milestones that trigger as each clinical trial progresses successfully. If a trial has successful clinical results, the client automatically has access to production for the next clinical phase. When the final clinical trial concludes and the client's product is approved by the health authority, the client automatically has access to a complete commercial agreement. This commercial agreement provides additional flexibility during the initial launch years to allow the client to adapt to varying demand until the market stabilizes, ensuring steady and high quality supply for each phase of development.
"We believe we have entered a new era in Samsung BioLogics' history with the creation of a new client-centric agreement that addresses the demand for not only variable and reliable supply through clinical trials but also for ensuring low COGS at the commercialization stage. This empowers our client with the ability to manufacture each phase of product at a different scale, increasing with each phase and allowing them to optimize their costs," said Dr. Tae Han Kim, CEO of Samsung BioLogics. "This enables a small, early stage biopharma to have predictable, low-cost, and reliable supply of their product through every stage of development by signing one agreement. This is efficient not just from a supply and COGS perspective but also a resource perspective for a company that has limited human capital to deploy."
Samsung BioLogics expects this new type of innovative, client-centric agreement to be highly attractive to early stage companies by providing certainty of stable and reliable supply through various stages with optimized cost effectiveness at commercialization.
About Samsung BioLogics
Established in 2011 and headquartered in Incheon, South Korea, Samsung BioLogics is a world class CDMO offering state-of-the-art development, manufacturing, and laboratory testing services. With a flawless regulatory record, the highest capacity, and the fastest throughput, Samsung BioLogics is the most qualified CDMO as chosen by our clients and is uniquely able to support the development and manufacturing of biologics product at every stage of the process while meeting the evolving needs of pharmaceutical companies worldwide. For more information, visit www.samsungbiologics.com.
Samsung BioLogics Global Press Contacts:
Chie Soo Rhee