Lotte Biologics said it has completed the acquisition of Bristol Myers Squibb (BMS) 's biopharmaceutical production plant in Syracuse, New York, the U.S., and has taken the first step toward entering the bio-industry.
The company had previously signed a contract to acquire BMS' biopharmaceutical production plant in May last year for $160 million.
"As of Dec. 31 last year, all acquisition procedures for the plant have been completed and started anew as Lotte Biologics Syracuse Plant from last Sunday," the company said. "Normally, when entering the contract manufacturing and development organization (CDMO) business, it takes at least five years for commercial production."
However, the company shortened the market entry period to less than one year by taking over the Syracuse plant, which has a quality system that integrates the know-how of global pharmaceutical companies, it added.
In addition, Lotte Biologics said that it took over 99.2 percent of the existing BMS employees, including core personnel, with more than 15 years of average bio experience.
The company stressed it will continue to strengthen its competitiveness in the CDMO market by actively utilizing the human resources of the Syracuse plant, which has experienced BMS' biopharmaceutical development, approval, and commercial production.
Notably, Lotte Biologics can expect stable sales and profits upon entering the market in 2023. In addition to acquiring the Syracuse plant, BMS signed a multi-year CDMO contract with Lotte Biologics.
Accordingly, the company will continuously produce BMS products from January.
Following the successful completion of the acquisition, Lotte Biologics said that it plans to make an additional investment of about $70 million and hire 70 new employees at the Syracuse plant.
Using the new investment and employees, the company will expand its production facilities and seek out new business opportunities such as finished drug products and antibody drug conjugates.
"Based on the successful acquisition of the Syracuse plant, Lotte Biologics will provide innovative medicines to patients and grow into a global CDMO company that can achieve sales of 1.5 trillion won, operating margin of 30 percent, and corporate value of 20 trillion won by 2030," Lotte Biologics CEO Lee Won-jik said.