Lotte Biologics’ sales amount to KRW 228.6 billion

with its U.S. plant on full-scale production

The company turned around with a net income for the year amounting to KRW 56.7 billion…The plant mainly produces BMS products

With ‘0 new orders,’ securing new clients has remained a challenge for the company …Lotte Biologics noticed attending the BIO International Convention in June

Lotte Biologics.

Lotte Biologics recorded sales of KRW 228.6 billion last year.

 

As the Syracuse manufacturing plant in the United States went into full-scale production, sales of KRW 83.1 billion in the first half of the year expanded to KRW 145.6 billion in the second half of the year.

 

The analysis indicates that Lotte Biologics’ Contract development and manufacturing organization (CDMO) business is on the right track.

 

According to the Financial Supervisory Service on the 23rd, Lotte Biologics' sales for last year amounted to KRW 228.6 billion.

 

The company, launched in May 2022, began generating significant revenue last year.

 

Sales for the first quarter were KRW 20.7 billion, KRW 62.3 billion for the second quarter, KRW 89.8 billion for the third quarter, and KRW 55.8 billion for the fourth quarter.

 

The net income for the year amounts to KRW 56.7 billion.

 

In 2022, the company turned around from a loss of KRW 17.7 billion.

 

Lotte Biologics' revenue is expected to derive most of its revenue from its CDMO business in the United States.

 

In May 2022, Lotte Biologics signed a contract with BMS to acquire a biopharmaceutical production plant in Syracuse, U.S., for $160 million (approximately KRW 220 billion).

 

This plant can produce raw materials for antibody medicines at an annual scale of 35,000 liters.

 

The acquisition process was completed as of December 31, 2022.

 

Starting from January 1, last year, the plant commenced full-scale production.

 

Lotte Biologics inherited the existing CDMO contracts as part of acquiring the BMS plant.

 

The company will commit to produce pharmaceuticals manufactured by BMS for the next three years after acquiring the plant.

 

According to this contract, last year, the Syracuse plant reportedly produced BMS's immune checkpoint inhibitors 'Opdivo' and 'Yervoy,' immunosuppressants for kidney transplantation 'NeuroLex,' and multiple myeloma treatment 'Empliciti.'

Lotte Biologics’ Syracuse manufacturing plant in the United States.

 

The company began generating significant revenue last year.

Securing new clients has remained a challenge for the company.

 

Last year's revenue was mostly derived from inheriting BMS's CDMO contract; thus, there were almost no new orders.

 

Considering the three-year contract period, it is analyzed that the company needs to secure new clients within the next two years to meet the target annual revenue of KRW 1.5 trillion by 2030.

 

Lotte Biologics' focus on global events such as the BIO International Convention, CPhI Global event, and the JP Morgan Healthcare Conference aligns with this strategy.

 

Lotte Biologics has announced its participation in BIO International Convention, which will be held in San Diego in June this year.

 

For the third consecutive year since 2022, the company will operate a booth, emphasizing its distinctive capabilities by showcasing the company’s manufacturing technology, process development services, quality systems, and plans for establishing a domestic mega plant.

 

During last year's conference, the company set up meeting tables and private meeting rooms within the booth, facilitating partnering with over 30 global pharmaceutical companies and small to medium-sized biotech firms interested in biopharmaceuticals CDMO.

 

This year, they plan to continue focusing on securing CDMO contracts with global pharmaceutical companies through meetings.

 

Lotte Biologics aims to achieve sales of KRW 1.5 trillion by 2030.

 

To accomplish this goal, they are securing domestic production facilities, in addition to expanding CDMO business centered around the Syracuse plant in the United States.

 

In June last year, they signed an MOU with the Incheon Metropolitan City and the Incheon Free Economic Zone Authority to construct a mega plant in Songdo, Incheon.

 

By 2030, the company plans to build three mega plants, each with a capacity of 360,000 liters.