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LOTTE Corporation has finalized the acquisition of Bristol Myers Squibb's manufacturing facility in East Syracuse for $160 million. This facility will become the hub for LOTTE's North American operations, spearheading its new venture into biologics contract development and manufacturing.

The East Syracuse facility has been pivotal in BMS's extensive history, contributing significantly to biologics process development and manufacturing. This state-of-the-art site boasts an impressive record of GMP regulatory approvals from over 64 countries and excels in both clinical and commercial manufacturing, with capabilities including 35,000-liter bioreactor capacity for the production of antibody drug substances.

LOTTE will inherit a highly skilled and experienced workforce, well-versed in GMP operations. With 420 professionals on board, LOTTE is poised to swiftly escalate and broaden its CDMO services worldwide.

Following the transaction, a strategic partnership valued at more than $220 million will continue between BMS and LOTTE. LOTTE intends to maintain large-scale biologics production and is also exploring substantial expansions and investments in drug product development and innovative fields such as cell and gene therapies.

In its medium to long-term vision, LOTTE Biologics aims to achieve $1.5 billion in revenue, a 30% profit margin, and a market capitalization of $20 billion by 2030. May 2022 will see the establishment of LOTTE BIOLOGICS as a subsidiary of LOTTE Corporation, with LOTTE BIOLOGICS USA set to launch within the year to handle sales and marketing in North America. LOTTE's ambitious goal is to invest an additional $3 billion over the next decade to rank among the top 10 global CDMO companies, constructing a biopharmaceutical value chain with a capacity exceeding 100,000 liters.

"We are confident that this experienced and advanced facility will perfectly align with our strategy to broaden our pharmaceutical operations globally, significantly enhancing our capacity and reach in the biopharmaceutical sector," stated Richard Lee, Vice President of LOTTE Corporation. Karin Shanahan, Executive Vice President of Global Product Development and Supply at Bristol Myers Squibb, commented, "The East Syracuse site has been a cornerstone of our company's legacy and manufacturing network for many years. We believe LOTTE will fully utilize the facility's potential, its capabilities, and its seasoned team to continue its critical role in serving patients worldwide."

The global biopharmaceutical market is projected to grow at a compound annual growth rate of 12% from 2020 to 2026, reaching $622 billion by 2026. Antibody drugs constitute 70% of the biopharmaceutical drug market, with ongoing development of new medications expected. Despite the robust growth in the antibody drug market and high utilization rates among major CDMO players, the decision to invest in capacity expansion remains a point of discussion.

Given that North America is the leading region for biologics research and manufacturing, it represents a highly attractive market and environment for prospective clients.