Korean Contract Development and Manufacturing Organization (CDMO), Lotte Biologics, is embarking on an ambitious growth trajectory, aiming to achieve a corporate valuation of approximately $15 billion by the close of this decade. The company has unveiled a strategic plan encompassing the establishment of three new manufacturing facilities within the same timeframe.
This week, Lotte formalized a significant land acquisition agreement with the Incheon Free Economic Zone Authority, located in Incheon, Korea. This pivotal real estate acquisition paves the way for Lotte to construct three distinct biopharmaceutical manufacturing plants by the year 2030.
Each of these cutting-edge facilities will possess the capacity to produce 120 kiloliters of antibody drugs, cumulatively yielding an impressive planned production capacity of 360 kiloliters, as elucidated in a company press release. Furthermore, Lotte is contemplating the addition of small-scale bioreactors tailored for clinical material production.
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The construction timeline for these facilities is structured as follows: Plants 1, 2, and 3 are anticipated to be completed in 2025, 2027, and 2030, respectively. Upon reaching full-scale operations by approximately 2034, Lotte Biologics will be equipped with an impressive total production capacity of 400 kiloliters.
Groundbreaking for the inaugural facility is slated for the first quarter of 2024, further underscoring Lotte’s commitment to rapid expansion. Lotte envisions the Bio Plant site becoming a pivotal hub, facilitating the broadening of its client base and bolstering its status as a premier CDMO player.
Established in 1967, Lotte Group has evolved into Korea’s fifth-largest conglomerate, with interests spanning diverse sectors such as food and beverage, retail, chemicals, and hospitality services. While Lotte’s foray into the life sciences sector is relatively recent, it has been characterized by strategic acquisitions and growth initiatives.
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In May 2022, Lotte made a significant move by investing $160 million in the acquisition of a Bristol Myers Squibb production facility located in East Syracuse, New York. This acquisition served as a pivotal stepping stone for Lotte’s ambitions to rapidly expand its CDMO offerings in North America.
The successful completion of the plant acquisition set the stage for Lotte Biologics to set formidable targets for the future. CEO Richard Lee articulated the company’s aspirations in a January release, emphasizing its aim to attain annual sales of $940 million, a robust 30% operating margin, and a corporate valuation in the vicinity of $15 billion by the year 2030. Lotte Biologics’ strategic vision represents a formidable commitment to innovation and growth in the field of biopharmaceutical manufacturing.
