Lotte seeks to acquire US CMO plant to enter bioindustry

The Korea Times

The Korea Times

Business

Fri, December 8, 2023 | 08:42

Bio

Lotte seeks to acquire US CMO plant to enter bioindustry

Posted : 2022-05-05 14:46

Updated : 2022-05-05 14:51

By Kim Hyun-bin

Lotte Group is in the process of acquiring a bioindustry contract manufacturing (CMO) plant in the U.S., according to the investment banking industry, Thursday. The move comes after the conglomerate declared the bioindustry as its new growth engine.

CMOs specialize in producing biopharmaceuticals developed by other companies.

Lotte Group Chairman Shin Dong-bin

Previously, Lotte hired Lee Won-jik, a former Samsung Biologics executive, to develop its CMO business. Lee is leading Lotte's new growth team, which is expected to lead the acquisition efforts of the CMO.

Last month, Lotte Group announced at its general shareholders' meeting that its next future growth engine will be the bioindustry, saying, "Lotte Holdings plans to directly invest and nurture the bio and healthcare business."

Lotte Group announced that it had recently applied for a trademark for "Lotte Biologics," Wednesday. Under this name, Lotte will also participate in the world's largest bioindustry expo, the Bio International Convention (Bio USA), which will be held in San Diego next month.

In the process of registering for the event, Lotte Biologics listed itself as part of the CMO industry.

Bio USA is an international event gathering pharmaceutical and bioindustry companies from all over the world, such as CMOs and firms specialized in R&D for new drug development. It has been consistently predicted in the industry that Lotte would advance into the CMO market instead of R&D for new drugs that require specialized research.

"The situation has not yet been confirmed, as various proposals are being reviewed to advance into the bio business," a Lotte Group official said. "Due to the nature of entering into a new industry, various reviews are being made."

hyunbin@koreatimes.co.kr