SK Bioscience will complete major facilities in Songdo

in 2024

Songdo's leading bio companies such as Samsung Biologics, Celltrion, and Celltrion Healthcare

All of the 1st to 4th place in pharmaceutical bio market capitalization moved into Songdo, and its performance is superior

SK Bioscience, the third-largest pharmaceutical bio company in market capitalization, will build a new construction in Songdo, Incheon.

 

It will invest 300 billion won by 2024 to build a new factory and laboratory.

 

Along with Samsung Biologics, Celltrion, and Celltrion Healthcare, the first to fourth place in the pharmaceutical bio market will gather in Songdo side by side.

 

◆SK Bioscience will complete the facility in Songdo in 2024 and invested 300 billion won SK Bioscience announced on the 27th that it has signed a land sale contract with the Incheon Free Economic Zone Authority.

 

The plan calls for the construction of a global R&PD (Research & Process Development) center on a 34,414㎡ site in Sr14 district 7, Songdo-dong, Incheon.

 

Earlier in August, SK Bioscience signed a contract with the Incheon Free Economic Zone Authority to acquire 33 billion won worth of land and buildings.

 

The newly created global R&PD center will house research institutes, factories, and offices for basic research and process development and production in the vaccine and bio sectors.

 

SK Bioscience plans to invest about 300 billion won in business expenses with the aim of completing it in the fourth quarter of 2024.

 

SK Bioscience plans to invest about 200 billion won by 2024 to expand manufacturing facilities for L-House, which has the latest vaccine production facilities such as cell culture, bacterial culture, gene recombination, and protein bonding, and build new platform facilities such as mRNA and next-generation viral vectors.

 

When SK Bioscience moves to Songdo, all the first to fourth largest pharmaceutical bio companies in Korea will be located in Songdo.

 

SK Bioscience, which was listed on the KOSPI market in March, has a market capitalization of 17.978 trillion won, ranking third after Samsung Biologics and Celltrion among pharmaceutical bio companies.

 

Samsung Biologics, a bio-captain, was established based in Songdo in 2011.

 

Samsung Biologics is currently operating three biopharmaceutical plants in Songdo.

 

Samsung Biologics is building its fourth plant with the aim of operating it in 2023.

 

The fourth plant is the largest ever with 256,000 liters of production.

 

When the fourth plant is in operation, Samsung Biologics will secure a total of 618,000 liters of production facilities along with its third plant (3,000 liters of first plant, 152,000 liters of second plant, and 180,000 liters of third plant).

 

Celltrion, which ranks second in the market capitalization of pharmaceutical bio companies, is the main player in growing Songdo, Incheon, as a mecca for biopharmaceuticals.

 

Celltrion's market capitalization is 28.1412 trillion won.

 

Founded in 2002, Celltrion operates two factories in Songdo.

 

In 2005, the first factory of 100,000 liters was completed in Songdo, and in 2011, the second factory of 90,000 liters was joined.

 

Celltrion is building a 60,000-liter plant with the aim of completing it in 2023.

 

Celltrion is also planning to build a 20-liter plant.

 

When the fourth plant is completed, a total of 450,000 liters of production facilities will be secured in Korea.

 

Celltrion Healthcare, an affiliate of Celltrion, is also evaluated as a bio company representing Songdo.

 

Celltrion Healthcare receives antibody biosimilar products from Celltrion and sells them to global retailers.

 

Celltrion Healthcare is located with Celltrion in Songdo, Incheon.

 

The market capitalization totaled 13.2084 trillion won.

 

The market capitalization of four companies, Samsung Biologics, Celltrion, SK Bioscience, and Celltrion Healthcare, totaled 117.696 trillion won.

 

These companies are by far one of the best among domestic pharmaceutical bio companies.

 

Among the major pharmaceutical bio companies that handle medicines in the third quarter, only three companies recorded operating profits of more than 100 billion won, including Samsung Biologics, Celltrion, and SK Bioscience.

 

The operating profit ratio of SK Bioscience and Celltrion to sales amounts to 45.5% and 40.9%.

 

Samsung Biologics also recorded a high purity return of 37.1%.

 

Along with Celltrion Healthcare, the average profit margin of the four Songdo bio companies exceeds 30%.

 

Recently, SK Bioscience saw its operating profit rise 175.3% year-on-year to 100.4 billion won in the third quarter and sales rise 123.8% year-on-year to 220.8 billion won.

 

The biggest factor in the surge in performance is the consignment production of the COVID-19 vaccine.

 

SK Bioscience signed a consignment production (CMO) contract with global pharmaceutical company AstraZeneca in July last year to supply COVID-19 vaccines.

 

It is a condition to produce the COVID-19 vaccine under development by AstraZeneca at L House in Andong, Gyeongsangbuk-do.

 

In August last year, the MOHW and Novavax also signed a three-way contract to supply the COVID-19 vaccine NVX-CoV2373 and began production.