South Korea's leading vaccine company, SK Bioscience, is set to acquire a German firm renowned for its contract manufacturing services, placing it among the global top 10 in the vaccine contract manufacturing industry.
On the 27th, SK Bioscience announced that it had signed an agreement to acquire a controlling stake in IDT Biologika, a CDMO (Contract Development and Manufacturing Organization) company, from the German pharmaceutical and biotechnology firm Klocke Group.
Through its wholly-owned subsidiary in Germany, SK Bioscience will acquire 60% of IDT Biologika's shares for approximately 339 billion KRW. This includes a portion of existing shares held by the Klocke Group and newly issued shares worth around 75 million euros (approximately 112 billion KRW) through a paid-in capital increase.
Upon completion of the share acquisition, SK Bioscience will become the largest shareholder of IDT Biologika. The Klocke Group will retain a 40% stake in IDT Biologika and will invest around 76 billion KRW to newly acquire a 1.9% stake in SK Bioscience. Consequently, SK Bioscience will finalize the acquisition process using 263 billion KRW in cash reserves.
Founded in 1921, IDT Biologika operates in both Germany and the United States and is recognized by over 10 pharmaceutical regulatory agencies globally, including those in the U.S. and Europe. The company employs approximately 1,800 people.
The cross-shareholding acquisition is aimed at establishing a close partnership based on mutual trust in business execution capabilities and growth potential. Moving forward, SK Bioscience and the Klocke Group will jointly manage IDT Biologika, ensuring operational stability and pursuing new growth opportunities together.
SK Bioscience stated, "This company, with a total enterprise value of approximately 656 billion KRW, is a noteworthy case of a domestic pharmaceutical and biotechnology firm acquiring a top 10 global vaccine contract manufacturing company at an attractive price. This acquisition, the largest investment in the history of the domestic vaccine industry, significantly enhances the company's value."
Through this equity acquisition, SK Bioscience will secure cGMP (Current Good Manufacturing Practice) level manufacturing infrastructure, essential for its growth and development as a global company. This will enable the company to expand its portfolio targeting advanced markets such as the U.S. and Europe and to venture into new bio fields including oncolytic viruses and cell and gene therapies (CGT).
IDT Biologika has a long-standing history of CDMO partnerships with over 15 major global multinational companies, biotech firms, and research institutions. In addition to COVID-19 vaccines, it has extensive experience in the contract manufacturing of various vaccines and biopharmaceuticals, including a long-term collaboration with Japan's Takeda Pharmaceutical for dengue fever vaccines. The company is also a producer of oncolytic virus therapies approved by the FDA and EMA.
In 2022, IDT Biologika achieved record sales of 312 million euros (approximately 466 billion KRW) due to COVID-19 vaccine production. Even after the one-time pandemic factors were removed, the company secured sales of around 275 million euros (approximately 410 billion KRW) last year.
Carsten Klocke, CEO of the Klocke Group, expressed his pleasure at creating the future with SK Bioscience, which has trusted IDT Biologika's expertise and strong customer partnerships.
An Jae-yong, President of SK Bioscience, stated, "This equity acquisition aims to establish a new growth axis for the company and to accelerate the entry of our core businesses and products into advanced and global markets. Given the business value of securing immediate sales, establishing a global foothold, and obtaining efficient production facilities, we will communicate with the market to enhance corporate value.