Lotte Biologics’ “Pure CDMO” Approach

In a press briefing held on October 26th during CPHI 2023 Worldwide in Barcelona, Spain, Lotte Biologics CEO, Won-Jik Lee, unveiled the company's resolute commitment to concentrate solely on pharmaceutical production, emphasizing its role as a Contract Development and Manufacturing Organization (CDMO). The CEO's announcement outlined Lotte Biologics' strategic vision and its pursuit of becoming a global top 10 CDMO.

Lee articulated the company's mission as providing high-quality and advanced technology services, encapsulated by the "End to End" approach that covers the entire spectrum of pharmaceutical development, from inception to commercial production.

In contrast to competitors diversifying into new drug and biosimilar development, Lotte Biologics boldly embraces a "Pure CDMO" philosophy. Lee defines this strategy as exclusively focusing on pharmaceutical development and production for external clients, steering clear of internal pharmaceutical development activities. The CEO emphasized the importance of safeguarding clients' research and development (R&D) data, as technology leakage is a paramount concern for pharmaceutical companies when outsourcing.

Lotte Biologics' commitment extends to providing production services based on their clients' specifications while refraining from using this information to develop their own biosimilar products.

Furthermore, Lee introduced a dual-pronged strategy that involves "Acquisition" and "New Construction" to bolster the company's competitiveness in the CDMO market. In this context, the company successfully acquired the Syracuse manufacturing facility from Bristol Myers Squibb (BMS) on December 31st, 2022, enabling Lotte Biologics to enter the CDMO business within just eight months.

The company is now considering expanding the Syracuse site into Lotte Biologics' North American center, exploring additions for antibody-drug conjugate (ADC) contract manufacturing services, cultivation, and clinical sample production facilities.

Lotte Biologics is actively investing $85 million to develop ADC contract manufacturing capabilities, with plans to transform the Syracuse site into a comprehensive facility, aiming to become the premier ADC specialized contract manufacturing service center in North America.

Lee affirmed the company's intent to extend its presence in North America by establishing CDO offices in key biotech clusters such as Boston and San Francisco to enhance customer accessibility and strengthen its competitive position in securing contracts.

Simultaneously, the company has ambitious plans to invest $3 billion by 2030 in the construction of three bio plants, collectively known as LOTTE BIO CAMPUS, in Songdo. These facilities will possess a combined production capacity of 360,000 liters, with full operational readiness targeted for 2034. The CEO underscored that these plants will include small-scale bioreactors and finished pharmaceutical facilities for clinical material production.

In February, Lotte Biologics designated Incheon Songdo as the hub for its domestic mega-plants and initiated the process by signing a land purchase agreement with the Incheon Free Economic Zone Authority (IFEZ) on October 4th for the construction of bio plants within the Songdo International City.