Lotte Biologics targets $1.1 billion in sales with new bio plants

South Korean biopharmaceutical company Lotte Biologics Co. said on Wednesday it is aiming for 1.5 trillion won ($1.1 billion) in annual sales by 2030 with the addition of three new domestic drug manufacturing plants.

With a combined production capacity of 400,000 liters of biopharmaceuticals, Lotte said it aims to join the global top 10 contract drugmakers, known as contract development and manufacturing organizations (CDMOs).

The long-term plans came as it broke ground on its first domestic drug manufacturing plant in the bio cluster of Songdo's international business district in Incheon, west of Seoul.

Lotte Engineering & Construction Co. is in charge of the engineering, procurement and construction (EPC) of the factory.

Construction of plant 1 with a production capacity of 120,000 liters is scheduled for completion in the first quarter of 2026 with a plan to start commercial operation by January 2027.

The company said it will build two more biopharmaceutical production facilities of the same size at the Songdo Bio Campus.

When the three plants are completed, Lotte will have a global production capacity of 400,000 liters, including the 40,000-liter Syracuse plant it acquired from US-based multinational pharmaceutical company Bristol Myers Squibb (BMS) in 2022.

Lotte acquired the New York-based factory at $160 million and said last year it would invest an additional $48 million in the facility.

Lotte Group Chairman Shin Dong-bin said in his speech at the construction site: “Lotte Biologics’ journey, which begins in Songdo, will become the future growth engine of Lotte Group. We will do our best to contribute to the successful creation of the Songdo bio cluster and turn Korea into the hub of the global bio industry.”

SYNERGY BETWEEN SYRACUSE PLANT, SONGDO BIO CLUSTER

Lotte said the first domestic plant in Songdo will have a “Titer Flex Quad Bioreactor System,” a high-titer facility that combines bioreactors to enhance the efficiency and flexibility of the production process.

The plant will also have an “N Minus One Perfusion (N-1 Perfusion)” system, which enables high-concentration cell culture by simultaneously culturing cells and removing waste.

Company executives said the Syracuse plant suits the smaller-scale production of clinical products and antibody-drug conjugates (ADCs) while the Songdo Bio Campus will handle large-scale antibody products via the high-titer and perfusion processes, offering a broader portfolio of options to clients.

“One of Syracuse’s key strengths is its extensive experience and GMP (good manufacturing practice) approval from many counties as well as its highly skilled GMP workforce,” said Yoo Hyung-duk, chief of business ramp-up at Lotte Biologics. “Through rotations between the Syracuse and Songdo plants, we aim to strengthen GMP capabilities and increase productivity at the new Songdo plant.”

In addition to the new Songdo factories, Lotte plans to build a laboratory and start a “Bio Venture Initiative” to support biotech ventures and seek technological cooperation.

When asked if Korean CDMO companies would benefit from the biosecurity law under discussion by the US Congress, Lotte Biologics Chief Executive Lee Won-jik, known in the West as Richard Lee, said: "Geopolitical issues continue to evolve. We’re watching the moves in the US and China regarding the law. We want to be flexible about it.”

(Added Group Chairman Shin Dong-bin’s comment during his speech at the construction site)

Write to Jeong-Min Nam at peux@hankyung.com

In-Soo Nam edited this article.