"Future Food is Bio" ... Lotte to Partner with Enzychem Lifesciences?

Ahead of the New Year 2021, researchers at Enzychem Lifesciences Central Research Institute in Jecheon, Chungbuk are focusing on research for COVID-19 treatments. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Jo In-kyung] Lotte Group is pushing forward with entering the bio business. Last year, both of the group's two main pillars, distribution and chemical sectors, suffered significant damage due to the impact of COVID-19, leading the group to seek new businesses to drive future growth.

According to Lotte Group on the 23rd, Lotte Holdings has recently been discussing cooperation plans with the KOSDAQ-listed bio venture company, Engchem Life Sciences. Possible cooperation methods include equity investment or establishing a joint venture.

A Lotte Holdings official stated, "We are exploring various investment opportunities for new growth projects, and cooperation with Engchem Life Sciences is one of the businesses under review. Discussions are ongoing on multiple fronts at the working level, but nothing has been decided yet."

Industry insiders interpret that Lotte's choice of the bio sector as a new business was influenced by the success of competitors such as Samsung (Samsung Biologics) and SK (SK Biopharm, SK Bioscience). Lotte Group Chairman Shin Dong-bin has also continuously urged securing new competitiveness and pursuing innovative changes even amid crisis situations through his New Year's address and executive meetings earlier this year.

Engchem Life Sciences, founded in 1999, is a new drug development venture company engaged in active pharmaceutical ingredients, global health functional foods, and global new drug development. It is currently conducting Phase 2 clinical trials for COVID-19 treatments, approved by the U.S. Food and Drug Administration (FDA).

Lotte expects that partnering with Engchem Life Sciences will allow it to enter not only new drug development but also contract manufacturing businesses.