SK Bioscience Co., the biopharmaceutical unit of South Korea’s SK Group, is seeking multi-billion-dollar mergers and acquisitions to expand its business portfolio from contract manufacturing to gene therapy development.
The Korean vaccine maker said on Thursday it is already in talks with several global biotechnology companies for strategic investment and joint research and development projects.
During an online press conference on the first anniversary of its initial public offering, Chief Executive Ahn Jae-yong said the company is particularly interested in the cell and gene therapy business.
“The cell and gene therapy treatment market is expanding at a growth rate of 90% every year. We need to expand our contract manufacturing business to include gene therapy treatments,” he said.
Eventually, the company aims to develop its own cell and gene therapy medications, he said.
SK is producing COVID-19 vaccines under contract development and manufacturing organization (CDMO) programs for its two global pharmaceutical clients – AstraZeneca plc and Novavax Inc.
SK Bioscience researchers IN TALKS TO SECURE mRNA PLATFORM
Ahn said on Thursday the company is also seeking to secure an mRNA technology platform to manufacture COVID-19 vaccines.
The mRNA vaccine, employed by Pfizer Inc. and Moderna Inc., is a type that uses a copy of a natural chemical called messenger RNA to produce an immune response.
Messenger RNA has been used to treat hepatosis and rare diseases, but given its relatively short development time, the RNA molecule is now used not just for vaccines but for the treatment of cancer and other illnesses.
Biopharmaceutical companies have been active in forging partnerships with and pursuing acquisitions of smaller competitors specialized in mRNA vaccine development.
The CEO said SK is in advanced negotiations with a global company to secure the mRNA platform instead of developing its own technology.
If the company successfully procures mRNA technology, it plans to bring in cell and gene therapy production facility at its main plant in Andong, North Kyongsang Province.
SK Bioscience's main vaccine plant in Andong, North Kyongsang Province SEEKING CDMO JOINT VENTURES
SK is currently developing its own recombinant coronavirus vaccine, which it aims to commercialize by the end of the first half.
It has jointly developed GBP510 with the Institute for Protein Design at the University of Washington under a project funded by the Bill & Melinda Gates Foundation and the Coalition for Epidemic Preparedness Innovations (CEPI).
CEO Ahn said the company is also seeking to build consignment contract manufacturing joint ventures with other biotech companies in the Middle East and Southeast Asia to expand its overseas production base.
He said the company currently has about 1.6 trillion won ($1.3 billion) in cash reserves and will be able to secure up to 6 trillion won in investment funds over the next four to five years.
SK also plans to attract strategic investors and issue corporate bonds if needed to secure investment funds.
“The value of good M&A targets in the bio industry has dropped by 50 to 70% amid a global stock market downturn,” said CEO Ahn. “Now is a good time for us to seek M&As.”
Write to Jae-young Han at jyhan@hankyung.com In-Soo Nam edited this article.
