SK biosciences, a Seongnam, South Korea-based global vaccine and biotech company, acquired a controlling stake in a IDT Biologika, a German vaccine contract development manufacturing organizations (CDMO).
The amount of the deal was not disclosed.
With the acquisition complete, SK bioscience is set to focus on promoting the organic and systematic integration of both companies to enhance management efficiency and drive business expansion. The company plans to double IDT Biologika’s annual sales by 2028 and improve its EBITDA (earnings before interest, taxes, depreciation, and amortization), targeting up to 25% of its sales.
IDT Biologika has maintained long-standing CDMO partnerships with over 15 biotech and pharmaceutical companies, as well as research institutions. In addition to manufacturing vaccines for viral diseases such as COVID-19, the company has experience in contract manufacturing of various biopharmaceuticals. Takeda is one such company that IDT has partnered with many years for its dengue vaccine.
Led by Jaeyong Ahn, President and CEO, SK bioscience is an innovative vaccine and biotech company committed to vaccine development and manufacturing to enable more equitable access to vaccines around the world. Leveraging strengths on technologies, SK bioscience has been dedicated to promoting human health from prevention to cure across the globe.
The company will first seek to maximize the utilization rate of IDT Biologika’s manufacturing facilities. In particular, the company plans to utilize some of IDT Biologika’s DS (drug substance) and DP (drug product) high-performance production lines, such as the large-dose vial line, for potential major projects with global pharmaceutical companies.
In addition, SK will optimize the lyophilized vial line to extend the existing contracts and win contracts for promising clinical pipelines and late-stage cell and gene therapy (CGT) projects. With additional cell line manufacturing and recombinant vaccine development technology, the company plans to pursue new CDMO contracts for mid- to large-scale products.
SK bioscience will also invest in high-growth businesses such as the pre-filled syringes (PFS), recombinant vaccine, and CGT, which includes oncolytic viruses (OV), adeno-associated viruses (AAV), and lentiviruses (LV). Additionally, the company will transfer its technology and production to IDT Biologika for key products such as flu, shingles, chickenpox, and typhoid vaccines.
Moving forward, SK bioscience undertakes key initiatives to improve IDT Biologika’s short-term operational efficiency and profitability, including enhancing batch operational efficiency and raw material management, streamlining the supply chain, and improving quality management and operational management.
FinSMEs
04/10/2024