Lotte Group's foray into the contract development and manufacturing organization (CDMO) business has gained significant traction since its inception in June 2022 with the establishment of Lotte Biologics. 

Now, one year later, the company has solidified its position in the industry by taking over a biopharmaceutical production facility in Syracuse, New Jersey, previously owned by renowned pharmaceutical giant Bristol-Myers Squibb (BMS). This strategic acquisition, coupled with their ambitious plans to construct a state-of-the-art mega plant in Korea, showcases Lotte Biologics' rapid expansion and commitment to becoming a major player in the CDMO sector.

Lotte Biologics is speeding up its business expansion overseas by participating in the 2023 BIO International Convention, which will be held in Boston, U.S., from June 5 to 8, to attract overseas customers. This is the second time that the company is attending the conference.

Korea Biomedical Review conducted an email interview with Lotte Biologics USA General Manager (GM) Mike Hausladen to get a more in-depth knowledge of what the company aims to achieve during the convention.

Hausladen was appointed to the GM role in October of last year after spending much of his career with BMS, starting at the Syracuse plant in 2001.

"As the GM of Lotte Biologics USA, my role encompasses a broad range of responsibilities in overseeing the operations and management of our Syracuse site," Hausladen said. "I am accountable for ensuring the smooth day-to-day functioning of the facility, with a particular emphasis on meeting production schedules and optimizing manufacturing processes to enhance productivity."

Maintaining strict adherence to current good manufacturing practice (cGMP) and safety standards is a top priority to uphold the highest quality standards, he added.

Hausladen revealed the company's primary objective at BIO 2023 will be attracting new clients through a steadfast dedication to quality services and meeting their specific needs.

"As BIO International provides an excellent platform for us to engage in activities facilitating the formation of contracts with our clients, we will actively seek collaborations and partnerships with pharmaceutical companies by showcasing our expertise, advanced technologies, and state-of-the-art facilities," he said.

By fostering new connections and showcasing the company's value proposition, it aims to strengthen its position as a committed CDMO partner in the bioindustry, Hausladen added.

The GM also stressed that the company intends to announce the company's mid-to-long-term plans including the construction of a mega plant, during the U.S. event.

Hausladen stressed that the company will be able to show a bigger presence at the convention this year.

"One of the key highlights is the significant expansion of our booth size compared to the previous year's BIO International Convention, and this larger booth space allows us to create a more immersive experience for attendees and effectively communicate our offerings," he said. "Employees from our Syracuse plant will also be joining us at the convention for the first time."

According to Hausladen, due to the post-merger integration (PMI) process, Syracuse employees were unable to participate in conferences last year.

However, starting this year, Syracuse employees will actively be participating in industry events like BIO 2023.

This integrated presence will ensure that visitors can have the opportunity to interact with both Korean and Syracuse teams, gaining a deeper understanding of Lotte Biologics and its global capabilities, he said.

'Being a pure CDMO company separates Lotte Biologics from other CDMO companies'

Hausladen explained how Lotte Biologics is different from other CDMO companies.

The CDMO sector has recently seen steep competition as traditional CDMO players such as Samsung Biologics, Lonza, Catalent, and Wuxi Biologics are expanding either investment or production capacity.

Hausladen emphasized that Lotte Biologics maintains its competitive edge by solely concentrating on CDMO services and refraining from engaging in drug development activities, a distinction that sets it apart from certain competitors.

The GM also stressed that the company's expertise, state-of-the-art facilities, and advanced technologies contribute to its distinctiveness in the CDMO space.

Lotte Biologics to become top 10 CDMO by 2030

Aside from participating in BIO 2023, Lotte Biologics envisions a future of substantial growth and expansion, with the goal of becoming a global Top 10 CDMO by 2030.

"The company will play a significant role in achieving this objective, with one of our key strategies being the expansion of the capabilities of our Syracuse site," Hausladen said. "Notably, we plan to invest in the development of antibody-drug conjugate (ADC) and drug product (DP) facilities."

By offering a comprehensive range of CDMO services, including ADC and DP, the Syracuse site will evolve into a one-stop platform for its clients, he added.

Hausladen stressed that this expansion will enable the company to cater to the diverse needs of its clients, providing them with integrated solutions from early-stage development to commercial manufacturing.