Korean Biopharma CDMOs Race to Expand Capacity to Lock In Long-Term Clients

The contract development and manufacturing organization (CDMO) market is heating up again as biopharma companies move to expand production capacity to secure long-term clients. Because biologic drug development takes years and customers typically commit volumes for extended periods once a partner is chosen, capacity has become a key battleground.

According to the Korea Health Industry Development Institute, the global pharmaceutical CDMO market is projected to grow 9.7% annually, to $310.5 billion (465.4395 trillion won) in 2029 from $195.9 billion (293.65 trillion won) in 2024. The institute cited rising R&D costs and increasing complexity in new-drug development, which are pushing drugmakers to outsource more work.

CDMO projects are widely seen as long-cycle businesses, often spanning about a decade from early research and development to commercialization. Many programs stay with the same partner from candidate discovery through nonclinical and clinical stages and into commercial production, making it possible to win long-term, repeat business once a contract is secured.

Industry expectations are also being shaped by a reshuffling of global biopharmaceutical supply chains. With the U.S. Biosecure Act aimed at curbing reliance on Chinese CDMOs and global drugmakers expanding outsourcing, demand is increasingly turning to Korean companies. The industry says supply-chain diversification by U.S. and European big pharma is structurally expanding order opportunities for Korean CDMOs.

Longer-term growth drivers remain clear. The Korea Bio Association estimates that about $400 billion (592 trillion won) worth of drug patents will expire over the next decade. With biologic patent expirations expected to accelerate around 2030, the industry expects continued moves to secure manufacturing facilities and partners in advance.
 
Korean CDMOs are already accelerating expansion. Samsung Biologics is pushing ahead with plans to build a sixth plant at its second Bio Campus in Songdo, Incheon, pending final board approval. After completing its fifth plant, the company secured 785,000 liters of capacity; with the sixth plant, total capacity is projected to reach about 965,000 liters by 2027. The company is also expected to pursue global orders through its Rockville, Maryland, plant with 60,000 liters of capacity.

Celltrion has moved aggressively to expand global capacity after acquiring a manufacturing facility in Branchburg, New Jersey, last year. It plans to raise that site’s capacity to 132,000 liters through phased expansion, with the industry expecting synergies with its existing biosimilar lineup. Celltrion also has 250,000 liters of capacity across its Songdo plants 1, 2 and 3, and its cumulative CMO order backlog for the first quarter has already topped 1 trillion won.

Lotte Biologics is also speeding construction of the first plant at its Songdo Bio Campus. The facility, designed to produce antibody drugs, is targeted for completion within the year, with commercial production slated to begin in the first half of next year. Once operations ramp up, the company says total capacity, including its Syracuse, New York, plant, is expected to reach about 160,000 liters.

A company official said the CDMO business is structured so that once a customer is secured, orders tend to continue over the long term. The current expansion race, the official said, is a “race against time” to lock in growth for the next decade, adding that the key test for Korean CDMOs will be whether they can draw momentum from the U.S. Biosecure Act and the broader supply-chain realignment.