SK Invests in US Biotech Firm... Accelerates Leap to World's 5th Largest CMO

▲SK Seorin Building exterior view

[Asia Economy Reporter Choi Dae-yeol] SK Inc. announced on the 16th that it is conducting exclusive negotiations to invest in CBM (The Center for Breakthrough Medicines), a gene and cell therapy (GCT) contract development and manufacturing organization (CDMO) located in Philadelphia, USA. The company expects to finalize the contract within this year.

Earlier in March, SK acquired the French company Eposkesi, which operates in the same business, and now, after about eight months, it is making an additional investment. The company anticipates that this investment will solidify its position as a leading GCT CMO in the United States and Europe, the world's largest pharmaceutical markets.

GCT refers to personalized innovative therapies that can treat intractable diseases such as cancer and genetic disorders. Due to their high therapeutic efficacy, they are experiencing rapid growth. Currently, about half of the biopharmaceuticals under clinical development in the US and Europe are GCTs. The industry expects GCTs to grow at an average annual rate of over 25% until 2025, surpassing antibody therapeutics, which is currently the largest biopharmaceutical market.

Along with this investment, CBM plans to sequentially expand its facilities to establish the world's largest single-facility GCT GMP plant of over 700,000 ft² (approximately 20,000 pyeong) by 2025. It will also increase its workforce by about 2,000 employees over the next four years. The company provides services covering all stages from preclinical to commercial therapeutic products. It is located in Greater Philadelphia, a core area within the only gene and cell therapy specialized biocluster in the US, known as Silicon Valley East. This region houses over 100 universities and hospitals, about 1,700 pharmaceutical companies, and approximately 70,000 experts.

SK Inc. stated, "In addition to world-class synthetic drug manufacturing capabilities, we aim to grow as a global leading CMO in both synthetic and bio sectors through strategic investments in innovative high value-added bio CMO businesses with high technological barriers." The company operates a global integrated CMO corporation, SK Pharmteco, established in the US in 2019, which includes SK Biotek Korea, SK Biotek Ireland, Ampac USA, and Eposkesi France. It is recognized as one of the top five CMOs globally in the synthetic drug field.

Lee Dong-hoon, head of SK Inc.'s Bio Investment Center, said, "Through focused development of bio CMO, we will become the world's number one gene and cell therapy CMO." Brian O'Neill, chairman of CBM's board, said, "Our partnership with SK Inc. will reduce the cost of gene and cell therapies to a level affordable for everyone, delivering a core positive impact to humanity," adding, "The partnership between our two companies will enable thousands of new therapies to be approved and commercialized."

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