SK pharmteco acquires CBM in pivot to global genetic medicine market

A researcher works at CBM's viral vector researching facility in Philadelphia, Pennsylvania, the U.S. Courtesy of SK pharmteco

By Ko Dong-hwan

SK pharmteco's acquisition of American genetic medicine developer CBM has given the Korean firm an advantage in the principal genetic medicine markets in the U.S. and Europe, according to SK Group.

SK, one of Korea's biggest conglomerates, said Wednesday its contract development and manufacturing organization (CDMO) subsidiary has acquired the Center for Breakthrough Medicines (CBM), a Philadelphia-based American CDMO for cell gene therapy (CGT). CGT is an emerging bio-medicinal technology that is anticipated to provide highly effective medicinal treatment.

With the acquisition, SK pharmteco has prepared for itself complete pipelines for the development and mass production of chemical drugs and CGT in the world's two biggest medicine markets. The production capacity upgrade has placed SK among the world's five CDMOs with such infrastructure. In 2021, SK pharmteco expanded its European production capacity by acquiring Yposkesi, a French CDMO.

CBM has completed building almost half of a 65,000 square meter-large CGT medicine factory, the world's its kind. The factory is expected to flexibly supply the growing demand for medicine production. The company also plans to build another factory for plasmid, a component for cell therapy and CGT, the next year.

CBM headquarters in Cellicon Valley in Philadelphia, Pennsylvania, the U.S. / Courtesy of SK pharmteco

CBM's location in Cellicon Valley, a CGT-specializing bio-industry sector in Philadelphia, is another advantage for SK. The location helped the American firm sign a partnership with the University of Pennsylvania and acquire a license for Adeno-associated virus (AAV), one of the most popular substances used for testing gene therapy medicines.

Yposkesi is also expected to provide critical leverage to SK pharmteco in the European market. The French firm last June completed construction of its 10,000-square-meter second factory in Europe, the biggest in the region.

“With CGT manufacturing sites in both Europe and the U.S., SK pharmteco is closer to its goal of being a leading CDMO that produces both chemical APIs (active pharmaceutical ingredients) and biologic drugs,” said Joerg Ahlgrimm, CEO of SK pharmteco.

Audrey Greenberg, co-founder and chief business officer of CBM, said the company is “truly excited to join the SK pharmteco family, a global leader in the CDMO industry.”

“Working together with Yposkesi, AMPAC Fine Chemicals and SK Biotek, we are very well positioned to work with our clients in saving millions of lives around the world,” said Greenberg, mentioning SK Group's subsidiaries involved in chemical APIs and CGT medicines.

Evaluate Pharma, a London-based consumer market researcher, said CGT market size will rise from $7.47 billion in 2021 to $55.6 billion in 2026 with an annual growth rate of 49 percent.