ST Pharm in talks with Moderna over contract manufacturing of COVID-19 vaccine

ST Pharm's headquarters in Ansan, Gyeonggi Province / Captured from ST Pharm's webpage

By Baek Byung-yeul, Kim Yoo-chul

Korean biotechnology firm, ST Pharm, is in talks with Moderna to produce messenger RNA (mRNA) COVID-19 vaccines, sources familiar with the matter told The Korea Times, Tuesday.

“ST Pharm is in talks with Moderna to produce its mRNA vaccines following approval by the Ministry of Food and Drug Safety,” one source said on condition of anonymity.

ST Pharm declined to comment on the possibility of signing a contract manufacturing organization (CMO) deal with Moderna.

“ST Pharm plans to apply liquid nanoparticle (LNP)-based drug substance technology for its RNA vaccines. The government will assist ST Pharm and other local biotech firms in their plans to develop mRNA vaccines,” a government official said.

mRNA vaccines are widely known for their improved safety and rapid scalability in terms of manufacturing and these vaccines were among the first COVID-19 vaccines that were authorized for use in the U.S. Also, mRNA vaccines are known to have a higher efficacy rate than other vaccines that are made of different methods and seldom cause blood clots.

Lipid nanoparticle technology (LNP) is required to make mRNA vaccines, involving tiny lipid droplets that effectively transport and protect the vaccine's components. LNP is used in the manufacture of Moderna's mRNA vaccines.

ST Pharm is an affiliate of local biopharma giant Dong-A Socio Group. Industry analysts have been paying close attention to ST Pharm as the company is among only a few players here that are capable of manufacturing mRNA technology-based vaccines.

Since Pfizer and Moderna vaccines produced using mRNA technology have taken the lead in the COVID-19 vaccine race, shares of ST Pharm have risen more than 20 percent over the last two months amid expectations that the company may end up producing mRNA COVID-19 vaccines.

ST Pharm has been preparing for some time to produce mRNA vaccines. In April, the company obtained LNP mRNA delivery technology, a core method of transporting mRNA vaccines into human cells, after signing a technology transfer deal with Swiss biotech firm, Genevant Sciences.

With this technology, ST Pharm aims to develop its own COVID-19 vaccines that are also effective against new variants, according to a disclosure submitted to the Financial Supervisory Service, April 8. The company noted that it is now capable of producing mRNA vaccines.

Some said the recent block sale of ST Pharm shares held by Dong-A Socio Group Chairman Kang Jeong-seok also shows that the company is close to announcing the details of vaccine development. Chairman Kang sold 35 billion won worth of ST Pharm stocks. While it remains unclear who purchased the chairman's shares, industry watchers believe that he sold his shares to a company that possesses a drug production facility.

While the government has been trying to secure enough COVID-19 vaccine supplies, Samsung Group's drug-making arm, Samsung Biologics, signed a contract with Moderna during President Moon Jae-in's recent visit to Washington, D.C.

Under the contract, the Samsung affiliate is slated to produce the Moderna vaccine at its plant here starting in the third quarter. On a related note, Samsung Biologics said it plans to add an mRNA vaccine manufacturing line at its core facility in Songdo, southwest of Seoul, by the first half of 2022.