Daewoong Bio Decides to Invest 50 Billion KRW to Expand Antibiotics Business

Daewoong Bio announced on the 14th that it will invest 50 billion KRW in the construction of a new factory to grow its antibiotic business.

Perspective view of Daewoong Bio's new factory dedicated to cephalosporin antibiotics
[Photo by Daewoong Bio]

The project begins with the construction of a new factory dedicated to cephalosporin (cepha) antibiotics. The currently operating factory in Seongnam-si, Gyeonggi Province is planned to operate only until next year due to outdated facilities and other reasons. Afterwards, Daewoong Bio plans to sustain and expand its antibiotic business through the new factory, which will be built with an investment of 50 billion KRW.

Cepha-class antibiotics have recently been evaluated as a business with declining marketability due to rising raw material prices and low drug prices, leading to expectations that more pharmaceutical companies will consider withdrawing from the business. If this prediction materializes, there is a possibility of a severe supply shortage. The U.S. Food and Drug Administration (FDA) recently announced issues regarding shortages in the supply of antibiotics and other pharmaceuticals.

In response, Daewoong Bio plans to continue its antibiotic business from a strategic and public interest perspective. The new factory will significantly increase production capacity, focusing on scaling up the business. The production capacity of the new factory will be doubled compared to the existing factory, while managing quality at the level of the latest facilities and current Good Manufacturing Practice (cGMP) standards to produce and supply high-quality products stably. Through this, the company aims to contribute to stabilizing the domestic antibiotic supply and become a company that helps improve public health.

Additionally, by supplying antibiotics stably, Daewoong Bio plans to expand its domestic market share and actively target the domestic cepha antibiotic market by expanding contract manufacturing organization (CMO) operations. Furthermore, based on the increased production capacity, the company plans to flexibly respond to global antibiotic shortages and diversify its revenue models.

Jin Sung-gon, CEO of Daewoong Bio, said, “Despite the challenging investment and market environment, we strategically decided to invest to turn the crisis into an opportunity. Once the construction of the new antibiotic factory is completed, we will operate the production line without interruption and grow into a company that protects public health together with Daewoong Pharmaceutical.”

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