[Featured Stock] SK Supplies Essential COVID-19 Medicines in the US... Overlapping Positive Factors Following Biopharm Listing

[Asia Economy Reporter Park Hyungsoo] SK is showing strong performance. This appears to be the result of expectations for the SK Biopharm IPO combined with the news that SK Pharmteco, an integrated raw pharmaceutical ingredient production corporation, has been selected as a key supplier for the essential medicine procurement project ordered by the U.S. government in response to the novel coronavirus infection (COVID-19).

As of 3 PM on the 20th, SK is trading at 219,500 KRW, up 8.93% from the previous day.

SK announced plans to leverage participation in the U.S. government budget support project, which could be worth up to 1 trillion KRW, to promote growth in its pharmaceutical contract manufacturing business and enhance its corporate image.

SK Pharmteco’s U.S. local subsidiary, AMPAC, signed a contract with the U.S. Department of Health and Human Services’ Office of the Assistant Secretary for Preparedness and Response and the local pharmaceutical-related nonprofit organization Flow to supply raw pharmaceutical ingredients produced at its U.S. manufacturing facilities to Flow.

Flow will use the medicines supplied by AMPAC for the production of essential medicines to treat COVID-19 and will also allocate them as part of the U.S. Strategic National Stockpile of raw pharmaceutical ingredients (SAPIR).

An SK official stated, “SK is actively fostering its bio and pharmaceutical businesses as growth engines,” adding, “By stably supplying high-quality raw pharmaceutical ingredients, we expect to contribute not only to the continuous growth of our CMO business but also to the creation of social value.”

This content was produced with the assistance of AI translation services.