SK Pharmteco, a subsidiary of SK Corporation specializing in Contract Development and Manufacturing Organization (CDMO) for pharmaceuticals, has made a significant move by acquiring the U.S. Cell and Gene Therapies (CGT) CDMO company, CBM (The Center for Breakthrough Medicines). This strategic acquisition propels SK Pharmteco into a prominent position as a leading CDMO company producing synthetic and innovative biopharmaceuticals in the United States and European markets.

On September 20th, SK Corporation announced the successful acquisition of CBM through SK Pharmteco. This acquisition follows SK Pharmteco's initial investment of $350 million in CBM in January 2022, aimed at fortifying its presence in the U.S. bio-business. SK Pharmteco exercised additional investment rights secured during that period to gain management control. Consequently, SK Pharmteco has ascended to become the majority shareholder, a significant leap from its previous status as one of CBM's two major shareholders.

With the integration of CBM, SK Pharmteco has established a robust local supply network encompassing both synthetic pharmaceuticals and CGT in the two primary markets of the United States and Europe, which together account for over 50% of the global pharmaceutical market. This acquisition places SK Pharmteco among the elite few, with only about five CDMO companies globally capable of developing and commercially producing both pharmaceutical categories in the United States and Europe. SK Pharmteco had previously secured its European production base by acquiring the French CGT CDMO company, Yposkesi, in 2021.

CBM is currently in the process of constructing a facility, the largest of its kind globally by CGT single production facility standards, covering 65,000 square meters. Presently, approximately 28,000 square meters of this facility have been completed and are operational, housing a state-of-the-art Viral Vector GMP facility and cutting-edge development/analytical research labs. CBM's expansive production facility is highly regarded for its adaptability in meeting the escalating demand for contract manufacturing services, particularly as clients progress into the commercialization phase and diversify their product portfolios.

Notably, CBM is on the brink of establishing a GMP production facility for plasmids, a pivotal component in Cell Therapy and CGT, scheduled for completion by 2024. This development positions CBM to offer an all-encompassing solution, covering plasmids, viral vectors, cell therapies, and finished products, all under one roof. This streamlined approach is expected to expedite production timelines and reduce costs, compared to the fragmented approach of engaging multiple suppliers for various stages of development and production.

CBM's strategic location in 'Cellicon Valley,' a specialized Cell and Gene Therapy (CGT) bio-cluster in Pennsylvania, USA, significantly contributes to its rapid growth. Through strategic partnerships with local biotech firms and Pennsylvania State University, CBM has secured licenses for the widely-utilized gene therapy vector, Adeno-Associated Virus (AAV). These strategic positioning efforts and research collaborations are pivotal factors contributing to CBM's promising outlook.

Joerg Ahlgrimm, CEO of SK Pharmteco, expressed, "We are committed to supporting the tireless efforts of pharmaceutical companies worldwide in developing new treatments and drugs. In this process, CBM's unique capabilities and expert team will play a pivotal role."

Yeon-Tae Kim, Head of SK Corporation's Bio Investment Center, emphasized, "The acquisition of CBM, with its distinct competitive advantages, will be a driving force for SK Pharmteco's growth in the U.S. biopharmaceutical market. We are determined to bolster our competitiveness in the bio-business sector in tandem with CBM and Yposkesi."