'Vaccine Veterans' SK Chemical Brothers

SK Bioscience Develops COVID Vaccine
Global Attention on Bill Gates' Mention
SK Chemicals Creates Korea's First Domestic Anticancer Drug
Affiliates' Diverse Bio Portfolio
Vice Chairman Choi Chang-won’s Bold Move with 500 Billion KRW R&D Investment in Uncharted Territory

[Asia Economy Reporter Choi Dae-yeol] "The SK Chemical group did not appear like a comet. It is a bio powerhouse with the remarkable achievement of developing Korea's first domestic new drug and the strength of having ventured early into vaccine development."

Regarding Bill Gates, chairman of the Bill & Melinda Gates Foundation, mentioning SK Bioscience, which is developing a novel coronavirus (COVID-19) vaccine, the bio industry is offering such evaluations. Regardless of Gates' 'surprise mention,' the bio-competitiveness of the SK Chemical group is seen as the result of a long accumulation of time through persistent challenges and experience.

In this process, Vice Chairman Choi Chang-won's proactive gamble is also drawing attention. SK Bioscience is a subsidiary of SK Chemical, established in 2018 through a physical division from SK Chemical. Vice Chairman Choi, the largest shareholder of SK Discovery, the holding company of SK Chemical, began targeting the vaccine business when he became CEO of SK Chemical in 2006, judging that the global life sciences paradigm was shifting from treatment to prevention.

Through the trajectory of SK Chemical, which developed the first domestic new anticancer drug 'Sunpla' in 1999, and SK Bioscience, which proactively entered the vaccine market, Vice Chairman Choi's 'bio gamble' is gaining renewed attention.

◆ Gates' High Praise for 'COVID-19 Vaccine Competitiveness' = Earlier, Chairman Gates mentioned 'SK Bioscience' specifically in a letter to President Moon Jae-in, stating, "Along with excellent quarantine measures, Korea is leading in private sector vaccine development." He expressed expectations that "If SK Bioscience succeeds in vaccine development, it could produce 200 million vaccines annually starting from June next year."

Currently, SK Bioscience is at the animal testing stage prior to clinical trials, and the progress does not appear fast on the surface. However, since it utilizes an existing vaccine development platform and, if successful in future development, is likely to mass-produce using a cell culture method, it has advantages even at the production stage.

Vaccine production is also critical after the research and development phase. Unlike typical synthetic drugs, mass production in a short period is difficult. SK Bioscience's cell culture method has a shorter production period and higher yield compared to the commonly used embryonated egg culture method. Gates' mention is interpreted as a high evaluation of SK Bioscience's competitiveness in this regard.

Vice Chairman Choi's gamble with SK Bioscience involved a large-scale investment of about 500 billion won in infrastructure construction and research and development starting in 2008. At that time, the domestic vaccine industry was considered an unknown territory, so Vice Chairman Choi's investment decision was a risky gamble.

In 2012, the L House vaccine factory was completed in Andong, Gyeongbuk, which is regarded as a world-class production facility. AstraZeneca, which is rapidly developing a COVID-19 vaccine, has also selected SK Bioscience as a contract manufacturing partner in case of successful vaccine development, reflecting this background.

◆ Bio Portfolio Including New Drug Development and Blood Products = Vice Chairman Choi's SK Chemical group has built a diverse portfolio in bio-technology development, biopharmaceuticals, and blood products. SK Chemical established the Life Sciences Research Institute in 1987 and entered the pharmaceutical business by acquiring Samsin Pharmaceutical in December of the same year. By acquiring other companies consecutively, it laid the foundation for businesses in synthetic, natural, and biopharmaceutical fields. From the beginning, the goal of new drug development was clear. This was based on the judgment that the future was uncertain with the existing domestic pharmaceutical companies' approach of distributing foreign drugs or mainly producing generic drugs. An industry insider evaluated, "SK Chemical stimulated the domestic pharmaceutical market significantly by releasing the first domestic new drug about 10 years after entering the pharmaceutical industry."

Another pillar of SK Chemical's bio industry, SK Plasma, specializes in blood products. Blood products are essential medicines for treating congenital immunodeficiency diseases and hemophilia, and raw materials can only be secured through blood donations. Unlike other raw materials, blood is difficult to obtain, so securing supply stability is paramount. An industry insider said, "The portfolio consisting of SK Chemical, SK Bioscience, and SK Plasma is generating various synergies in the bio sector."

Meanwhile, SK Bioscience plans to pursue an initial public offering (IPO) next year to secure investment funds and expand its business. As of 10:30 a.m. on the day, SK Chemical's stock price was trading at 320,000 won, up about 15% from the previous trading day.

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