Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
Lotte chairman stresses importance of biologics as growth driver for group
Lotte Group Chairman Shin Dong-bin inspects antibody-drug conjugate manufacturing facilities at Lotte Biologics' Syracuse Bio Campus in New York, Sunday. Courtesy of Lotte Group
By Nam Hyun-woo
Lotte Group Chairman Shin Dong-bin stressed the strategic importance of its biopharmaceutical business to the conglomerate’s growth during his visit to a U.S. biologics plant earlier this week.
According to the group Thursday, Shin visited Lotte Biologics’ Syracuse Bio Campus in New York on Sunday and inspected antibody-drug conjugate (ADC) manufacturing facilities at the plant. It was Shin’s first visit to the site since it began ADC production in April.
“I expect the Syracuse Bio Campus to serve as a new growth engine, not only for Lotte Biologics but for the entire group,” Shin said. “As the company expands its ADC production facilities, it should accelerate efforts to secure additional ADC contracts and other contract development and manufacturing orders so that it can strengthen its global competitiveness.”
The Syracuse plant is the key manufacturing base for Lotte Biologics, which was established in 2022 as a biologics contract development and manufacturing organization (CDMO).
Lotte Biologics acquired the Syracuse plant in 2023 from Bristol Myers Squibb and has since invested $100 million to build ADC production facilities. The plant began full-scale operation in April after signing an ADC supply contract with an Asia-based biotech firm.
The plant could prove pivotal for Lotte Biologics, as the U.S. Trump administration recently announced a 100 percent tariff on drug imports while exempting companies that have manufacturing facilities in America or are in the process of building them. While other Korean biopharmaceutical firms are scrambling to hedge against the new tariff risks, the Syracuse plant has insulated Lotte Biologics from the impact, allowing the company to actively pursue new contracts in the U.S. market.
An artist's impression of Lotte Biologics bio plant in Incheon / Courtesy of Lotte Biologics
The company’s focus on ADC is also contributing to its rosy outlook. ADC is gaining the biopharmaceutical industry’s attention as a next-generation targeted cancer therapy, which precisely delivers the drug to tumor cells while sparing healthy tissue.
Lotte Biologics said its ADC production facilities are capable of providing a full range of CDMO services, from clinical development to commercial production. The site is equipped with integrated production and purification lines, including conjugation reactors with a capacity of up to 1,000 liters, and also offers analytical characterization services.
As a newcomer in the CDMO industry, Lotte Biologics is also building its own plant in Incheon, with the goal of beginning commercial operation in 2027. This year, Lotte Biologics participated in major global events such as the JP Morgan Healthcare Conference, World ADC Asia, BIO USA and BIO Japan. The company plans to engage with potential clients by participating in CPHI Worldwide in Germany in October and World ADC in the U.S. in November.
Lotte Group has been betting heavily on Lotte Biologics as a new growth driver in its retail-heavy portfolio. Since 2023, Lotte Corp., the group’s holding company, has injected a total of 624.6 billion won ($454 million) into its affiliates, with Lotte Biologics accounting for 72.8 percent of the total. Currently, Shin Yoo-yeol — the eldest son of Shin Dong-bin — is Lotte Biologics’ head of global strategy.