The Korea Times close
National
  • Politics
  • Diplomacy
  • Defense
  • Labor & Environment
  • Law & Crime
  • Health & Welfare
  • Embassy
  • Seoul & Provinces
  • Education
  • Foreign Communities
  • Obituaries
Biz & Tech
  • Auto
  • IT
  • Game
  • Manufacturing
  • Retail & Food
  • Energy
  • Construction
  • Airlines
Finance
  • Policies
  • Economy
  • Markets
  • Banks
  • Non-banks
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
Lifestyle
  • Arts
  • Books
  • Travel & Cuisine
  • Trend
  • Fashion
  • Around Town
  • Fortune Telling
Entertainment
  • K-pop
  • K-dramas & Shows
  • Movies
  • Music
  • Performances
  • Asia Model Festival
Sports
  • Football
  • Golf
  • Baseball
  • Other Sports
World
  • Asia Pacific
  • Americas
  • Europe & Africa
  • SCMP
Video
  • On the Spot
  • Feature
  • News
Photos
  • Photo News
  • Darkroom
Community
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
Finance
  • Policies
  • Economy
  • Markets
  • Banks
  • Non-banks
Tue, March 2, 2021 | 14:50
Markets
SK Bioscience aims to be dominant player in global vaccine industry
Posted : 2021-02-23 16:38
Updated : 2021-02-23 17:28
Mail
Print Preview
Font Size Up
Font Size Down
SK Bioscience's vaccine center, located in Andong, North Gyeongsang Province / Courtesy of SK Bioscience
SK Bioscience's vaccine center, located in Andong, North Gyeongsang Province / Courtesy of SK Bioscience

SK's CDMO arm expects double-digit growth in global vaccine market

By Anna J. Park

Ahead of its upcoming IPO next month, SK Bioscience, a subsidiary of SK Chemicals focusing on developing and manufacturing vaccines, vows to grow into a major vaccine player in the global market.

According to the firm's CEO, Ahn Jae-yong, during Tuesday's online press conference, the company expects to register a quantum leap in the near future in its annual revenues as well as profits. The CEO explained that the biopharmaceutical company recorded around 200 billion won ($180 million) in annual revenue in 2020, yet given the firm's continuous double-digit growth rate, it is only the start of solid advancement.

"The company surpassed the breakeven point back in 2018, and the firm's revenue growth has been recording around 23 percent a year since then," CEO Ahn said during the press conference.

The offering price of the firm's stocks is currently set between 49,000 won and 65,000 won, and it will be officially determined after conducting a stock allotment subscription survey of local and foreign institutional investors for two days, on March 4 and 5.

Retail investors can register for stock allotment on March 9 and 10 at brokerage firms. The company's debut on the benchmark KOSPI will come sometime around mid-March.

The contract development and manufacturing organization (CDMO) affiliate of SK will offer 22.95 million shares through the IPO process, hoping to raise approximately 1.49 trillion won in capital.

CEO Ahn said that the company plans to spend around a quarter of this raised capital on research and development to maintain and strengthen its status as one of Asia's most significant vaccine developers and manufacturers. Another 400 billion won is earmarked for facility investment, and 100 billion won more will be used for vaccine platform technology. The rest will be used on other business priorities.

"The company hopes to be a dominant player in the entire process of the vaccine industry from R&D, manufacturing and distribution to sales," Ahn said during the press conference.

He stressed that the current COVID-19 situation has expanded the global vaccine market for the time being as well as in the foreseeable future. He explained that SK Bioscience's stable growth will be maintained, due to high entry barriers to the vaccine market. A newcomer typically needs at least five to seven years of preparation as well as hundreds of millions of dollars in capital.

"While the global vaccine market is estimated to be around 50 trillion won, coronavirus pandemic vaccines are expected to grow into a market size of around 10 trillion won to 15 trillion won, and the global vaccine market is expected to log a double-digit growth rate in the near future," the CEO said.

The CEO highlighted that the global pandemic has changed the landscape of the global vaccine industry, as it allowed a close and active partnership among vaccine developers and manufacturers to fight against common diseases. This strengthened partnership business model will affect SK Bioscience's outlook favorably, as it has a solid footing as a prestigious CDMO firm in Asia.


Emailannajpark@koreatimes.co.kr Article ListMore articles by this reporter









 
 
  • South Korea's next generation jet KF-X set to roll out, boost local defense industry
  • Growing pains of Korea's leading internet firms
  • Moon's continued two-track approach unlikely to help improve ties with Japan
  • Bloody Sunday in Myanmar
  • Woman fined for breaking quarantine to visit dying father
  • New moms in their 20s becoming increasingly rare
  • Portion of male births of newborns hits record low
  • McKinsey set to entice Oliver Wyman Korea's clients
  • Myanmarese workers in Korea stage democracy rally [VIDEO]
  • Loan interest rates rise sharply
  • Stray Kids' Hyunjin admits to bullying, takes hiatus from performing Stray Kids' Hyunjin admits to bullying, takes hiatus from performing
  • 'Minari' wins best foreign-language film at 2021 Golden Globes 'Minari' wins best foreign-language film at 2021 Golden Globes
  • K-pop girl group members accused of ostracizing bandmate K-pop girl group members accused of ostracizing bandmate
  • Lady Gaga's dogs recovered safely after theft, shooting Lady Gaga's dogs recovered safely after theft, shooting
  • BTS wins Song of the Year, Best Pop Song Award at Korean Music Awards BTS wins Song of the Year, Best Pop Song Award at Korean Music Awards
DARKROOM
  • Bloody Sunday in Myanmar

    Bloody Sunday in Myanmar

  • Earth is suffering

    Earth is suffering

  • NASA's Perseverance rover is landing on Mars

    NASA's Perseverance rover is landing on Mars

  • Fun in the snow, sledding for everyone

    Fun in the snow, sledding for everyone

  • Our children deserve better: Part 3

    Our children deserve better: Part 3

  • About Korea Times
  • CEO Message
  • Times History
  • Content Sales
  • Media Kit
  • Contact Us
  • Location
  • Privacy Statement
  • Terms of Service
  • Mobile Service
  • RSS Service
  • 고충처리인
  • hankookilbo
  • Dongwha Group
  • Code of Ethics
Copyright