Food Sustained CJ... Now Growing with Bio

CJ CheilJedang Red Bio Business
Transferred to CheonLab in January Next Year
Maximizing R&D Synergy

Dutch Bio Company
'Batavia' Acquired for 267.7 Billion KRW
Contract Manufacturing of Gene Therapy

[Asia Economy Reporter Lim Hye-seon] CJ is transforming CJ CheilJedang into a ‘bio giant.’ Through Cheonlab, a life science information company acquired last July, CJ is focusing on new drug development and entering the rapidly growing gene therapy contract development and manufacturing organization (CGT CDMO) market to strengthen its red bio business capabilities. Red bio refers to bio-businesses in the medical and healthcare fields related to blood-derived products.

Accelerating the Shift from Food to Bio

CJ CheilJedang announced on the 9th that it will transfer all red bio business operations to Cheonlab. This move aims to enhance new drug development capabilities based on red bio and improve business execution. The transfer price is 6.147 billion KRW, with the transfer date set for January 3 next year. CJ CheilJedang expects that the transfer of operations will maximize research and development (R&D) synergies. Previously, CJ CheilJedang acquired a 44.55% stake in Cheonlab for 98.25 billion KRW.

CJ CheilJedang will also acquire the Dutch bio company Batavia Biosciences (Batavia) for 267.7 billion KRW. Batavia was founded in 2010 by executives who managed research, development, and production of Janssen vaccines for global pharmaceutical companies. The company is notable for its virus vaccine and vector (materials that deliver genes into cells) manufacturing technologies. CJ CheilJedang plans to enter the gene therapy contract development and manufacturing business, producing raw materials, clinical trial samples, and commercial medicines for next-generation bio-pharmaceuticals such as cell gene therapies and oncolytic virus therapies. The gene therapy CDMO market is expected to grow annually by 27-35%, reaching 14-16 billion USD (approximately 16.5 to 18.9 trillion KRW) by 2030.

Bio to Lead Mid- to Long-Term Growth

This move by CJ CheilJedang is seen as a follow-up to CJ Group’s mid-term vision (Culture, Platform, Wellness, Sustainability), particularly the expansion plan for the wellness business. Recently, Chairman Lee Jae-hyun personally announced the group’s mid-term vision for the first time in 11 years, outlining a 10 trillion KRW investment across four sectors. The core of wellness is the ‘red bio business.’ Chairman Lee stated, "Wellness aims to expand red bio centered on next-generation therapeutics to provide personalized total health solutions."

CJ CheilJedang entered the green bio business in 1964 by producing MSG, an amino acid-based seasoning, based on fermentation and refining technologies used in flour and sugar manufacturing. It has become a global bio powerhouse, competing for the top ranks worldwide in lysine, threonine, and nucleic acids. The company has also entered the white bio market, producing environmentally friendly bio-based raw materials instead of petrochemical-based ones, and is currently mass-producing marine biodegradable plastic materials. Following the acquisition of Cheonlab, CJ CheilJedang has expanded into the red bio sector with next-generation drugs based on microbiome technology, establishing itself as a comprehensive bio company.

Supported by business expansion, CJ CheilJedang’s bio division performance is rapidly growing. Sales increased from 1.8016 trillion KRW in 2016 to 2.9817 trillion KRW last year. Through the third quarter of this year (January to September), sales reached 2.7391 trillion KRW, and the company is expected to enter the 3 trillion KRW annual sales era.

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