May 7, 2026 — Samsung Biologics, the world's largest contract development and manufacturing organization (CDMO) by biologics production volume, is facing an unprecedented operational crisis as its first-ever general strike enters its second week. The walkout, which began on May 1, has already disrupted production of 23 critical pharmaceutical products, including anticancer drugs and HIV treatments, with estimated losses exceeding 650 billion Korean won (approximately $480 million).
The strike marks a watershed moment for the global biologics CDMO industry. Samsung Biologics employs 5,455 workers across five manufacturing plants and an ADC facility in Songdo, South Korea. The company counts 17 of the top 20 global pharmaceutical companies among its clients.
The labor action unfolded in escalating phases. A partial strike from April 28-30 involving 60 workers already halted production of several products, resulting in losses of 150 billion won. The full-scale general strike from May 1-5 involved approximately 2,800 union members (70% of the 4,000-member union). Since May 6, workers have transitioned to indefinite work-to-rule action.
The union demands a 14% increase in base pay, a one-time incentive payment of 30 million won per worker, and performance bonuses equivalent to 20% of operating profit.
The strike highlights a fundamental characteristic of biologics production: biopharmaceutical processes require continuous, year-round, 24-hour operation. Unlike small-molecule API manufacturing, biologics production involves living cell cultures that cannot simply be paused and restarted.
When bioreactor conditions are disrupted, CHO cells can die within hours, therapeutic proteins can denature, entire production batches representing months of work must be discarded, and expensive culture media and chromatography resins are lost.
For CDMO clients, biologics manufacturing typically operates on 12-18 month production cycles. A disrupted batch cannot simply be restarted.
The 23 products affected reportedly include anticancer drugs and HIV treatments. For pharmaceutical companies relying on Samsung Biologics, the strike raises concerns about supply continuity, contractual penalties, and trust erosion.
CEO John Rim apologized via email before the full-scale strike. The company has said it is deploying available personnel to limit disruption, but the inherent constraints of biologics manufacturing mean any shortfall in skilled operators directly impacts production capacity.
Short-Term: Reduced demand for cell culture media, chromatography resins, and single-use consumables during the strike period, with potential re-routing to alternative CDMOs.
Medium-Term: The crisis accelerates dual-sourcing strategies. Pharmaceutical companies will diversify CDMO relationships, benefiting smaller CDMOs. Regional manufacturing gains traction. Safety stocks may replace just-in-time models.
Long-Term: The strike may accelerate automation investments. Rival CDMOs including Lonza, Fujifilm Diosynth, and WuXi Biologics stand to gain market share.
The global pharmaceutical CMO market is projected to grow from $54.73 billion in 2025 to $60.7 billion in 2026 (CAGR 10.9%). Samsung Biologics reported Q1 2026 operating profit of 580.5 billion won. The estimated strike losses of 650 billion won already exceed this figure.
The Samsung Biologics strike is a stress test for the global biologics CDMO model. As the industry scales to meet growing demand for biosimilars, ADCs, and novel biologics, the reliability of manufacturing partners becomes a strategic asset. For API and raw material suppliers, the immediate priority is monitoring production re-routing that could shift demand patterns.
