SK bioscience said it signed a simple agreement for future equity (SAFE) with U.S. biotech company Sunflower Therapeutics, investing $2 million (2.78 billion won).

SAFE is a method of investment that allows for the acquisition of equity in early-stage startups, where it is difficult to assess the current company value.

The investment terms are set in advance, and the equity proportion is determined when a subsequent qualifying investment is made. This approach, which is widely used in Silicon Valley for early-stage investments in startups, allows investors to secure significant equity with a relatively small initial investment. Korea has also been using the SAFE method since 2020.

Founded in 2018, Sunflower Therapeutics is a biotech company that has developed a yeast-based protein manufacturing technology, which is necessary for developing antigens and antibodies. '

This tech simplifies vaccine processes, reducing production time and costs, thereby enhancing the efficiency of vaccine development and manufacturing.

Notably, SK bioscience stressed that Sunflower Therapeutics boasts unique technology in small-footprint perfusion culture, a method that maintains high cell density and allows for high-concentration yields in smaller volumes.

This technology enables stable, high-yield production of various microorganisms, including antibodies, antigens, enzymes, cytokines, and hormones, in small quantities.

Leveraging these proprietary technologies, Sunflower has received research funding for multiple projects from the Bill & Melinda Gates Foundation and collaborates with government agencies such as the U.S. Department of Defense, multinational pharmaceutical companies, MIT, and other research institutions.

Through this SAFE investment, SK bioscience anticipates optimizing its vaccine manufacturing processes using Sunflower's technology.

By implementing Sunflower's yeast-based protein manufacturing technology in SK bioscience's Andong L House vaccine production facility, the company expects to enhance yield by up to 7.7 times, reducing production costs per dose by approximately 88.7 percent.

SK bioscience and Sunflower first partnered last year on HPV (human papillomavirus) vaccine R&D.

Impressed by Sunflower's technological prowess and potential during the collaboration, SK bioscience decided to proceed with the investment and aims to maximize investment value through Sunflower's IPO or third-party mergers and acquisitions while exploring various avenues to expand technological cooperation between the two companies.

"Our accessible, cutting-edge protein manufacturing solutions are moving the needle by reimagining the biologic development process." Sunflower Therapeutics CEO and President Kerry R. Love said. "We're thrilled by SK bioscience's expanded support and look forward to democratizing and supporting product development for vaccine producers across the globe with our next-generation manufacturing technologies, coupled with our thoughtful, resourceful services."

SK bioscience CEO Ahn Jae-yong also said, "In this time where various infectious diseases threaten humanity, vaccine sovereignty is the key to protecting the safety of our people and enhancing national competition."

The company is excited to deepen its relationship with Sunflower Therapeutics and make an impact on global health as it continues to develop efficacious, safe and cost-effective vaccines, Ahn added.