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$360M Contract given to Samsung For Production of COVID-19 Medicines

May 7, 2020
SasungBiologicsBuilding

Vir Biotechnology, a San Francisco-based company as made contract worth $360 million, with Samsung Biologics for The making of Covid-19 medicines which are expected to begin from October


This contract was announced in the month of April, 2020. And Dr. Tae Han Kim, CEO of Samsung Biologics made the following statement

"We are proud to be working as a partner with Vir in their response to the global COVID-19 pandemic. With millions of people being impacted by this virus, accessibility to effective treatment is paramount. Vir's candidate molecules supported by Samsung Biologics' production scale have the potential to bring hope to countless lives across nations suffering from COVID-19."

Vir Biotechnology, has actually been working on the production of a COVID-19 medicine which they are calling ‘SARS-CoV-2 monoclonal antibody’ and it is based on monoclonal antibodies (mAb)

Vir plans to proceed directly into a phase 2 clinical trial within the next three to five months. The contract agreement with Samsung Biologics builds on Vir's previously announced manufacturing agreement with WuXi Biologics (stock code: 2269.HK) and its letter of intent with Biogen, Inc. (Nasdaq: BIIB).

George Scangos, Ph.D., CEO of Vir says that they expect significant need around the world for antibody therapies.

"Given the trajectory of the COVID-19 pandemic, our expectation is that there will be a significant need around the world for antibody therapies. "Accordingly, we are taking proactive steps to reserve large scale manufacturing capacity to be ready to move quickly with any of our antibody candidates that prove to be clinically safe and effective. We are pleased to partner with Samsung Biologics who share our commitment to work with exceptional speed to address this pandemic."

So to pruduce the company’s finalized drug in large scale, Samsung Biologics has gotten a contract worth $360 million to produce the drugs. This agreement is expected to be finalized by May. This is actually the largest contract for the firm ever since it has gone public and it accounts for 63% of the total revenue reported by the company last year.

The manufacturing of the drugs could start from October, however, the commercial batches will be possibly produced from early 2021 at Samsung Biologics’ plant in Songdo, located 30 kilometers southwest of Seoul in South Korea.

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