Samsung Bio’s business performance will continue to be strong heading into 2026, barring the possibility of an employee strike breaking out behind the scenes of record-high profits.
The South Korean CDMO reported first-quarter sales of 1.26 trillion Korean won ($851.9 million), a significant 257.6% year-on-year increase.
The company said this strong momentum was driven primarily by the “full capacity operation” of its four manufacturing plants, which resulted in cumulative contract value of $21.4 billion in the quarter, reflecting “continued demand from customers around the world.”
“Samsung Biologics achieved stable growth in the first quarter, supported by consistent execution across our manufacturing network and continued demand from our customers,” CEO John Lim said in a company release, adding that the company remains focused on “superior quality, operational consistency, and strategic investments to support sustainable long-term growth.”
As business expands from its recently opened fifth factory, Samsung Bio said it is confident of achieving its 2026 revenue forecast of 15% to 20% annual growth.
The guidance includes contributions from Samsung Bio’s acquisition of its first U.S. site in Rockville, Maryland, from GSK with 60,000 liters of drug substance capacity. The deal, which will keep 500 workers on site, was formally signed earlier this month.
The CDMO is mindful of the rise of its U.S. footprint and growing global workforce, but problems are reoccurring at its home campus in Songdo, Icheon.
The writing on the wall has been that of a union strike since late March, when the company’s union “overwhelmingly” voted in favor of a strike. At the time, the union warned of “serious structural concerns” about the company’s management and declining pay conditions despite ballooning profits.
The vote established a plan for a phased strike, with a rally planned for April 22 and a strike scheduled for May 1, unless management presents a “credible voluntary proposal.” The union represents about 75% of all Samsung Bio employees, according to an announcement at the time.
Now, April 22nd has arrived with no sign of an agreement between the labor union and management. To that end, a group of 2,200 people held their first rally for an hour outside Samsung Bio’s Bio Campus 1, the union reported.
The company did not immediately respond to Fierce Pharma’s request for comment, but Samsung Bio said it “respects the legitimate activities of labor unions and remains committed to promoting constructive labor-management relations.”
According to labor union chairman Park Jae-sung, much of the controversy stems from the leak of personnel documents in November, but management has “not apologized or taken responsibility” for the leak.
Mr. Jae Sung emphasized, “We are not giving up the opportunity for dialogue even now.” “However, if management continues to refuse meaningful consultation, we will demonstrate our resolve through planned strike action.”
The breach included sensitive personal information of approximately 5,000 employees, including addresses, salaries, and performance reviews, which was published on an internal network that was accessible to any employee, Business Korea reported at the time.
The union is now pushing for broader changes at the company, with Jason calling its mission “a fight to change the company’s decision-making structure.”
Part of the concern lies with Samsung Bio’s parent company, Samsung Electronics, and the “lack of independent bargaining authority” the CDMO has within its larger conglomerate, the union previously said.
Other issues include compensation relative to competitors. According to a Business Korea report, Park said that Samsung Bio’s starting salary is “less than 50 million won,” while Lotte Biologics’ starting salary is 54 million won.
Last year, Samsung Bio posted record sales of 4.6 trillion Korean won ($3.1 billion). It was also the first Korean biopharmaceutical to exceed 2 trillion won in annual profit. However, according to Business Korea, if the strike occurs from May 1st to May 5th as planned, there is a possibility of losses due to production delays.
