CHA Medical and Bio Group said Wednesday that it has begun constructing its Cell Gene Biobank (CGB) facility in Pangyo, Gyeonggi Province.

The group has invested 300 billion won ($247.5 million) in the project. The new facility will be on a 710,000 square feet site to become one of the world's most extensive single facilities for cell and gene therapy manufacturing and advanced stem cell biobanking. The group expects to complete the facility's construction by 2024.

"Cell and gene therapy development and production require extensive expertise and highly specialized equipment compared to other biologics with more established manufacturing processes, such as antibodies," said Dr. Kwang Yul Cha, the global research and innovation leader at CHA Medical and Bio Group.

The group believes that this CGB facility will function as Asia's leading cell and gene therapy manufacturing hub, incorporating CHA Biotech's long history and in-depth knowledge of cell therapy R&D and manufacturing process technology, Kwang added.

The facility will offer a space dedicated to cell and gene therapy integrated with contract development and manufacturing organization (CDMO) services for mRNA, viral vectors, and plasmid DNA.

The plant will also turn out different products on each floor. To prevent contamination, the group will operate the facility according to the current good manufacturing practice (cGMP), the quality control standard for pharmaceuticals of the U.S. Food and Drug Administration. The stem cell biobank will store various cell types, including stem cells, NK cells, cord blood, sperm cells, and egg cells.

Group officials said that upon completion, the CGB facility would serve as a key growth engine of CHA Medical & Bio Group's CDMO business.

Together with Matica Biotechnology, the company's affiliate cell and gene therapy expert CDMO in the U.S., CHA Medical & Bio Group aims to establish a differentiated strategy for building a strong, global CDMO network.