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| This photo provided by Lotte Biologics shows its CEO, Lee Won-jik, speaking during the J.P. Morgan Healthcare Conference held in San Francisco from Jan. 9-12, 2022. Yonhap |
Lotte Biologics, a pharmaceutical unit under the retail giant Lotte Group, said Wednesday it will invest $3 billion to build a bio industrial complex in Korea by 2030 that houses three plants.
Its CEO, Lee Won-jik, announced the plan during the J.P. Morgan Healthcare Conference held in San Francisco, from Monday to Thursday, according to Lotte Biologics.
The company said the production complex, tentatively named "Lotte Bio Campus," will house three manufacturing plants, and it will start building the first one in the second half of this year.
The first factory is scheduled to begin commercial production from 2027, the company added.
Lotte Biologics said the complex will be completed in 2034 and post $3 billion in revenue.
Its massive investment plan came after the company completed the acquisition of a plant from global biopharmaceutical company Bristol Myers Squibb in Syracuse, New York, for $160 million last week as part of its strategy to go overseas.
The Korean company said it will funnel $70 million into the Syracuse plant to expand its facilities for drug products and antibody drug conjugates.
"With our two-track strategy for acquisition and new facilities, Lotte Biologics is planning to become a major player in the contract development and manufacturing organization (CDMO) market, and strengthen our business competitiveness," Lee was quoted as saying.
The CDMO refers to a company that handles not only the outsourced manufacturing of drug substances, but also all of the innovation and development work that occurs prior to manufacturing one. (Yonhap)
