SK pharmteco’s booth at the Bio International Convention (BioUSA), held June 3-6 in San Diego, USA. (Yonhap)
SEOUL, Jun. 8 (Korea Bizwire) –As the United States Congress deliberates the Biosecure Act, which would prohibit federal agencies from dealing with certain Chinese biotech companies, South Korean pharmaceutical contract development and manufacturing organizations (CDMOs) are seizing the chance to attract new clients.
The proposed legislation, which has reached the House floor for a full vote, explicitly designates major Chinese drug CDMO firms like WuXi AppTec and WuXi Biologics as “companies of concern.”
Anticipating that clients may sever ties with these Chinese outfits to maintain access to the U.S. market, South Korean CDMOs are aggressively courting their business.
This dynamic was palpable at the BIO International Convention (BIO USA), the world’s largest biotechnology trade show, which concluded on June 6 in San Diego.
SK Pharmteco, a CDMO established by SK Group in California in 2019, secured a prominent booth space originally reserved for WuXi Biologics.
“Through this exhibition, we aim not only to promote SK Pharmteco’s brand and capabilities in cell and gene therapies, but also to explore the potential impact of the ‘China risk’ on the industry,” said Lee Shiuk, the company’s chief strategy officer.
“We’re already seeing the effects of the legislation, with clients previously outsourcing to Chinese firms inquiring about production transition options, including to South Korean companies.”
Prestige BioPharma Group holds a press conference at the Bio International Convention (BioUSA), held June 3-6 in San Diego, California, USA. (Image courtesy of Prestige BioPharma Group)
At a press conference during BIO USA, Prestige Biopharma, part of the Prestige Biopharma Group, revealed it had formed a task force earlier this year to address the Biosecure Act.
The company is analyzing WuXi Biologics’ client base to identify sales prospects and has bolstered its workforce with experts from global pharmaceutical firms in areas like sales and quality control.
Prestige Biopharma highlighted that its four plants in South Korea offer a combined 154,000-liter biopharmaceutical production capacity, using the same processes as WuXi Biologics, which it is emphasizing to clients seeking an alternative.
ST Pharm, the small molecule CDMO subsidiary of Dong-A Socio Holdings, underscored its ability to handle not just the final production stage, but the entire process for oligonucleotide therapies – its specialty – within South Korea, avoiding China altogether.
“Our second oligonucleotide plant in Ansan is slated for completion by year-end and will be operational by June or July 2024, further boosting our production capabilities,” said ST Pharm CEO Kim Kyungjin.
Lotte Biologics touted its forthcoming CDMO facility in Songdo, Incheon, and an antibody-drug conjugate expansion in Syracuse, New York, giving it a manufacturing presence in both South Korea and the U.S.
The CHA Bio Group promoted its global cell and gene therapy CDMO network spanning South Korea, the U.S., Japan and other locations.
Samsung Biologics, set to boast the world’s largest biopharmaceutical capacity upon completing its Songdo Plant 5 in April 2025, prominently showcased its contract development capabilities at BIO USA.
This is seen as a strategic move, as a significant portion of the Chinese firms’ revenues targeted by the Biosecure Act reportedly comes from development services.
M. H. Lee (mhlee@koreabizwire.com)
