CJ CheilJedang Acquires Dutch Bio Company Vitavia for 267.7 Billion KRW

Entry into Next-Generation Bio Contract Development and Manufacturing Market
Securing Gene Therapy Drug Manufacturing Technology and Infrastructure

[Asia Economy Reporter Lim Hye-seon] CJ is entering the cell and gene therapy contract development and manufacturing organization (CGT CDMO) market by acquiring an overseas biotechnology (BT) company in the pharmaceutical and bio sector.

CJ CheilJedang held a board meeting on the afternoon of the 8th and resolved and announced the acquisition of approximately 76% of the shares of Batavia Biosciences, a bio contract development and manufacturing company headquartered in the Netherlands, for 267.7 billion KRW.

The existing major shareholder of Batavia will remain as the second-largest shareholder and company management to continue business operations and focus on executing new growth strategies as part of the CJ Group. Both companies plan to complete the acquisition process within this year.

Next-generation bio CDMO refers to businesses that receive orders from companies developing next-generation biopharmaceuticals such as cell and gene therapies and oncolytic virus therapies to produce active pharmaceutical ingredients, clinical trial samples, and commercial pharmaceuticals. By 2030, the global market size is expected to grow annually by 35-27%, reaching 14-16 billion USD (approximately 16.5 to 18.9 trillion KRW).

The gene therapy CDMO market requires highly advanced technology and expertise compared to synthetic pharmaceuticals dealing with simple compounds or bio-pharmaceutical CDMOs centered on antibody therapies with established manufacturing methods. Since the gene therapy market itself is in the early stages of industrial development, standards are still being established. This means opportunities exist not only for existing large CDMO companies but also for strong small-sized companies with technological capabilities.

Batavia was founded in 2010 by executives who were in charge of research, development, and production of Janssen Vaccines, a global pharmaceutical company. The company possesses unique capabilities in developing efficient manufacturing processes for viral vaccines and vectors (substances that deliver genes or other materials into the body or cells), gaining particular attention as the gene therapy and vaccine manufacturing industries have rapidly emerged following the COVID-19 pandemic.

Utilizing Batavia’s technology and process development optimization platform, it is expected to reduce production costs by more than 50% compared to existing technologies at the commercialization stage, shorten development time by over six months, and improve product stability. Batavia’s headquarters and GMP (Good Manufacturing Practice) facilities are located in Leiden, Netherlands, one of Europe’s most active science parks for research and investment. It also has an R&D center in Boston, USA, and an Asia sales office in Hong Kong, China, thus already possessing the infrastructure for global expansion.

Until recently, Batavia has built manufacturing capabilities for viral vaccines and gene therapies through various collaborations with global pharmaceutical companies, global medical public foundations, and renowned university-affiliated research institutions.

A CJ CheilJedang official stated, "While global pharmaceutical and bio companies are actively developing cell and gene new drugs, few have the formulation, manufacturing process technology, and production infrastructure required for this. Batavia has established long-term partnerships with clients based on core technologies and manufacturing capabilities to improve productivity of viral vaccines and vectors."

With this acquisition of Batavia, CJ CheilJedang is entering the global gene therapy contract development and manufacturing (CGT CDMO) market and expanding its existing Red Bio business portfolio. Earlier, CheilJedang secured next-generation drug development capabilities based on the microbiome by acquiring the life science information company ‘ChunLab’ in July.

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