Samsung BioLogics Co., the biopharmaceutical business arm of Samsung Group, has signed a $262.35 million contract to supply drugs to Cilag GmbH International, the company announced Wednesday.

The company said the deal was signed based on minimum purchase and its supply volume would rise further following future negotiations between the parties. The company did not disclose other details - contract period and the name of biologic drugs to be produced, which will remain confidential until December 31, 2019 according to the contract.

In pharmaceutical contract manufacturing organization (CMO) industries, the name of products and the supply volume are generally kept confidential. However, Samsung BioLogics revealed part of related information after it made a debut on the main Seoul bourse November 10. All listed companies are obliged to disclose company information that would affect their share movement.

The contract value is 335.94 percent of Samsung BioLogics’ recent sales. The company posted 91.3 billion won ($77.6 million) in sales and 203.6 billion won in operating loss last year. It has consecutively logged losses since 2012 due to hefty initial investment to build and expand manufacturing facilities since its inception in 2011.

Cilag GmbH International, based in Zug, Switzerland, develops and manufactures pharmaceutical products under Janssen that is the pharmaceutical division of Johnson & Johnson. Remicade developed by Janssen is a blockbuster autoimmune treatment for rheumatoid arthritis and others.

On Thursday, Samsung BioLogics shares ended at 167,500 won, down 1.5 percent, or 2,500 won from the previous session. It debuted on the market last week with its initial public offering (IPO) price set at 136,000 won apiece, the top end of the IPO price band in a record overwhelming book-building.

By Shin Chan-ok

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