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LOTTE Biologics CEO Richard Won-jik Lee announced the company’s full-fledged entry into the biopharma market as a contract development and manufacturing organization (CDMO) at the 2023 JPMorgan Healthcare Conference’s Asia-Pacific track on Tuesday, January 10th(Tuesday), US local time, and provided details of the company’s mid- to long-term vision for the next decade.

The 41st JPMorgan Healthcare Conference, which was held over four days from January 9th to 12th, is the largest event in the biotechnology industry and a global investment conference that attracts more than 1,500 firms and investors from more than 50 countries around the world.

According to CEO Lee, "With a dual-track growth strategy that includes both acquisition and new construction, LOTTE plans to quickly establish itself as a key player in the CDMO market and further strengthen its business competitiveness."

■ Successfully completes rapid market entry through acquisition of the Syracuse plant, with subsequent announcement of further expansion plans for global CDMO business development

On January 1st of this year, LOTTE Biologics announced the successful acquisition of the Syracuse plant in the United States from global pharmaceutical giant Bristol Myers Squibb Co. (BMS), thereby marking its first successful foray into the CDMO market a mere eight months after the company was first established. In most cases, it takes at least five years for a new player in the CDMO arena to commence commercial production by constructing a new factory, but LOTTE Biologics reduced the time to market to less than a year by acquiring the Syracuse plant, a facility that inherits both the know-how and quality systems of a major global pharmaceutical.

CEO Lee went on to point out that in order to develop the Syracuse plant into a North American hub for LOTTE Biologics, the company is considering expansion plans that include ADC contract manufacturing services as well as clinical drug substance incubation and drug product (DP) facilities.

ADC is a next-generation oncology treatment platform that combines antibodies and chemically synthesized drugs to eliminate cancer cells. LOTTE Biologics hopes to transform its Syracuse plant into a facility that can provide a one-stop platform that offers everything from antibody drug production to chemical drug conjugation, as part of its efforts to become North America’s premier ADC contract manufacturing center.

In addition to Syracuse, the company is also looking into expanding its footing in North America by establishing contract development (CDO) facilities in core bio-clusters such as Boston’s Kendall Square and San Francisco to enhance customer ease-of-access and boost order competitiveness.

■ Unveils plans to build a new 360,000-liter Mega Plant in Korea

On the domestic front, LOTTE Biologics plans to invest a total of USD 3 billion (approximately KRW 3trillion)by 2030 to construct three Mega Plants with a total production capacity of 360,000 liters of antibody drugs in Korea. Each plant will be capable of producing 120,000 liters of antibody drugs, with additional expansion plans calling for a small-scale incubator for clinical drug substance production as well as a commercial drug product production facility.

Construction of the first Mega Plant will begin in the second half of 2023, with completion scheduled for the second half of 2025, GMP approval for the second half of 2026, and commercial production for 2027. LOTTE aims to have all three Mega Plants fully operational by 2034 and expects to generate revenue of USD 3 billion while maintaining an operating profit margin of 35 percent.

In addition, as part of its efforts to contribute to the creation of a biopharma ecosystem within Korea and the discovery of new therapeutics, the Mega Plant site will host the LOTTE Bio Campus, alongside a Bio-Venture Initiative where startups and ventures in the process of discovering and developing new drugs can make use LOTTE’s facilities and establish a venue for cooperation. Through these measures, LOTTE Biologics plans to play a key role throughout the global pharmaceutical industry value chain, encompassing everything from drug development to commercial production.

CEO Richard Won-jik Lee summed up his aspirations for the future by saying, “LOTTE will strive to provide innovative therapeutics to patients in need and leap forward as a global CDMO that contributes to the development of the biopharma industry as a whole.”