SK Pharmteco Acquires US Cell and Gene Therapy CDMO 'CBM'

SK Corp., Completing Global Supply Chains for Cell and Gene Therapies and Synthetic Pharmaceuticals in Major US and European Markets

CBM Viral Vector Production Facility. Photo by SK Corp.

SK Inc.'s pharmaceutical contract development and manufacturing organization (CDMO) subsidiary, SK Pharmteco, has acquired CBM (The Center for Breakthrough Medicines), a U.S.-based cell and gene therapy (CGT) CDMO. This accelerates its leap toward becoming a 'leading CDMO' producing both synthetic and innovative biopharmaceuticals in the U.S. and Europe.

SK Inc. announced on the 20th that it secured management rights of CBM through SK Pharmteco. SK Pharmteco invested $350 million (approximately 420 billion KRW) in CBM last January to strengthen its bio business in the U.S., and exercised additional investment rights obtained at that time to secure management control. SK Pharmteco rose from the second-largest shareholder to the largest shareholder of CBM.

With the acquisition of CBM, SK Pharmteco has completed a local supply chain covering both synthetic drugs and cell and gene therapies in the two major markets of the U.S. and Europe, which account for more than 50% of the global pharmaceutical market. Globally, only about five CDMOs, including SK Pharmteco, can develop processes and conduct commercial production in both pharmaceutical fields in the U.S. and Europe. SK Pharmteco secured a European production base by acquiring Yposkesi, a French cell and gene therapy CDMO, in 2021.

The cell and gene therapy sector is a promising market expected to grow rapidly. According to market research firm Evaluate Pharma, the market size is projected to grow from approximately $7.47 billion (about 10 trillion KRW) in 2021 to about $55.59 billion (about 74 trillion KRW) in 2026, with an average annual growth rate of about 49%. Development is particularly active in the U.S. and Europe, and due to the complex development process compared to conventional drugs, proximity to developers significantly influences CDMO selection.

CBM is constructing the world's largest single production facility for cell and gene therapies, spanning 65,000㎡, of which about 28,000㎡ has been completed and is currently operating viral vector GMP (Good Manufacturing Practice) facilities and development and analytical laboratories. CBM's large-scale production facilities are considered a strength as they can flexibly respond to increasing contract demand due to clients entering commercialization stages and product volume growth. Viral vectors refer to virus-based gene delivery vehicles designed to safely and efficiently deliver therapeutic DNA inserted into viruses into the human body.

Notably, CBM is preparing to establish GMP production facilities for cell therapy and plasmids, the raw materials for cell and gene therapies, in 2024. This will enable the provision of the entire process?from plasmids to viral vectors and cell therapies, including development, production, and analysis?in one location. Compared to using different suppliers for each development and production stage, this can reduce production time and costs.

CBM's location in Cellicon Valley, a bio-cluster specializing in cell and gene therapies in Pennsylvania, U.S., is another factor that supports rapid growth expectations. CBM collaborates in research and manufacturing through strategic partnerships with biotech companies in Cellicon Valley and the University of Pennsylvania, securing licenses for adeno-associated virus (AAV), the most commonly used vector in gene therapy.

Going forward, SK Pharmteco plans to strengthen its global market presence through integrated operations with Yposkesi. Yposkesi completed its second plant in June, boasting a total facility size of 10,000㎡, one of the largest in Europe.

Joerg Ahlgrimm, CEO of SK Pharmteco, said, “SK Pharmteco will support the massive efforts of global pharmaceutical companies to turn new therapies and drugs into reality. In this process, the unique capabilities and experts at CBM will be a great asset.”

Kim Yeontae, Head of SK Inc.'s Bio Investment Center, stated, “The acquisition of CBM, which has differentiated competitiveness, will be a major driving force for SK Pharmteco’s growth in the U.S. bio-pharmaceutical market. We plan to focus on strengthening bio business competitiveness together with CBM and Yposkesi.”

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