In a strategic move to strengthen its global position, SK pharmteco announced its acquisition of the US-based cell and gene therapy (CGT) contract development and manufacturing organization (CDMO), The Center for Breakthrough Medicines (CBM).
With this acquisition, SK pharmteco plans to emerge as a leading CDMO in the field of CGT by producing both synthetic and innovative biopharmaceuticals in the U.S. and Europe.
The move comes after SK pharmteco invested $350 million in CBM last year to bolster its bio business in the U.S., including additional investment rights.
SK pharmteco exercised the rights to acquire a controlling stake in CBM, becoming its largest shareholder.
The acquisition strategically positions SK pharmteco to capture a substantial portion of the pharmaceutical market in both the U.S. and Europe, regions that collectively account for over 50 percent of the synthetic drug and CGT global market.
According to the company, globally, fewer than six CDMOs, including SK pharmteco, have the capability to develop and commercially produce in these two therapeutic areas across the U.S. and Europe. Among the six, SK pharmteco also acquired Yposkesi, a French CGT CDMO, in 2021, establishing a manufacturing foothold in Europe.
CBM is currently constructing the world's largest single CGT production facility, spanning 650,000 square meters.
"Already, about 280,000 square meters of this facility is operational, housing its viral vector good manufacturing practice (GMP) facilities and development and analysis labs," SK pharmteco said. "By 2024, CBM plans to establish GMP production facilities for cell therapies and plasmid, a key raw material for CGT."
This will allow end-to-end development, production, and analysis at one location, offering potential savings in production time and costs, it added.
Looking ahead, SK pharmteco plans to integrate its operations with Yposkesi to enhance its global market reach. Yposkesi recently completed its second factory, boasting a total facility size of 10,000 sq. meters, making it one of the largest in Europe.
"SK pharmteco is committed to ensuring that global pharmaceutical companies' substantial efforts in developing new treatments and drugs become a reality," SK pharmteco CEO Joerg Ahlgrimm said. "CBM's unparalleled expertise and specialists will be pivotal in this journey."
Kim Yeon-tae, Head of the Bio Investment Center at SK Inc., also said, "Acquiring CBM, with its distinct competitive edge, will be a significant catalyst for SK pharmteco's growth in the U.S. biopharmaceutical market.:
Together with CBM and Yposkesi, SK pharmteco plans to intensify its focus on strengthening its bio-business competencies, Kim added.
According to market research firm Evaluate Pharma, the CGT sector is poised for robust growth. Estimated at around $74.7 billion in 2021, the market is projected to reach approximately $555.9 billion by 2026, reflecting an annual growth rate of nearly 49 percent.