SK bioscience Completed Acquisition with IDT Biologika
Thursday, October 03, 2024
SK bioscience has completed the acquisition of a controlling stake in IDT Biologika.
SK bioscience intends to integrate the two companies, boosting management efficiency and expanding business operations. Plans are underway to double IDT Biologika’s annual sales by 2028 and improve its earnings before interest, taxes, depreciation, and amortization (EBITDA), aiming for up to 25% of sales.
The acquisition is expected to accelerate SK bioscience’s growth, with a goal of achieving KRW 1 trillion (approximately USD 757.6 million) in consolidated sales within three years. Key to this expansion is the anticipated launch of next-generation pneumococcal vaccines, driving growth beyond 2028 and improving financial performance.
This follows an agreement signed in June 2024 between SK bioscience and Klocke Group, a German biopharmaceutical firm, to acquire the majority stake in IDT Biologika, a Klocke Group affiliate.
SK bioscience aims to maximize the use of IDT Biologika’s manufacturing facilities, particularly focusing on its high-performance production lines. The company plans to utilize drug substance (DS) and drug product (DP) lines, such as the large-dose vial line, for major projects with global pharmaceutical companies.
Additionally, SK bioscience will optimize the lyophilized vial line, extend existing contracts, and secure new contracts for cell and gene therapy (CGT) projects.
Investments will also be made in high-growth sectors such as pre-filled syringes, recombinant vaccines, and CGT, including oncolytic viruses, adeno-associated viruses, and lentiviruses. SK bioscience plans to transfer technology and production to IDT Biologika for vaccines such as flu, shingles, chickenpox, and typhoid.
To enhance IDT Biologika’s operational efficiency and profitability, SK bioscience will focus on improving batch processes, raw material management, supply chain streamlining, and quality management. These improvements aim to leverage IDT Biologika’s expertise and long-standing CDMO partnerships with over 15 major global biotech and pharmaceutical companies.
SK bioscience believes the combined strengths of both companies will create significant synergies, paving the way for accelerated global expansion.
Source: skbioscience.com
