President Moon Attends Korea-US Vaccine Cooperation Agreement Ceremony...First Case of Global Vaccine Companies Investing in Korean Production Facilities
[Asia Economy Reporter Ryu Jeong-min] Cytiva, a global vaccine raw material company based in the United States, has decided to invest $52.5 million in vaccine raw material production facilities in South Korea. This marks the first case of a global vaccine raw material company investing in production facilities within South Korea.
President Moon Jae-in, who is visiting New York, USA to attend the 76th United Nations General Assembly, participated in the Korea-US vaccine cooperation agreement signing ceremony held locally on the morning of the 21st (local time) and reviewed the cooperation achievements between Korean and US companies and research institutions. The event was attended by Minister of Health and Welfare Kwon Deok-cheol, Director-General of Trade Negotiations Yeo Han-gu, Ambassador Lee Soo-hyuk to the United States, as well as representatives from 16 vaccine-related companies and research institutions from Korea and the United States.
The Blue House stated, "This agreement signing event was organized as the first occasion to commemorate the tangible achievements made since President Moon and President Biden agreed to promote the Korea-US Global Vaccine Partnership at their summit in May."
U.S.-based Cytiva submitted an investment report to the Ministry of Trade, Industry and Energy outlining plans to invest $52.5 million from 2022 to 2024 to establish vaccine raw material production facilities in South Korea. The Blue House explained, "Cytiva's investment is the first case of a global vaccine raw material company reporting investment in production facilities in South Korea since COVID-19."
The background behind Cytiva's decision to invest in South Korea is analyzed to include South Korea's possession of the world's second-largest biopharmaceutical production capacity and the Korean government's active commitment to fostering the vaccine industry.
Minister of Health and Welfare Kwon Deok-cheol stated, "The Cytiva investment reported today is the first overseas vaccine company investment attraction achieved since the announcement of the global vaccine hub strategy in August," adding, "The government will continue to actively promote domestic investment attraction by global vaccine companies by expanding various incentives such as designation of advanced investment zones and support for investment funds."
Meanwhile, four memorandums of understanding (MOUs) were signed between Korean and US companies regarding cooperation in vaccine raw materials and components, joint development, and contract manufacturing. YuviroLogics signed an agreement to supply an immune adjuvant, an essential material for a vaccine candidate developed by US-based Ajuvance Technology.
iGene agreed to import raw materials such as capping reagents used in mRNA vaccine candidates from US-based TriLink Biotechnology. PharmGen Science, US-based Access Bio, and Ivy Pharma signed a tripartite agreement to jointly develop mRNA vaccines.
US-based HDT Bio decided to outsource the production of its currently developing COVID-19 vaccine to Curatis.
Minister Kwon evaluated, "With this signing of business agreements, it is expected that Korea-US vaccine cooperation will expand and solidify not only between governments but also across private sectors, universities, and various fields," adding, "Through mRNA basic research cooperation, we have laid the foundation for collaboration that can respond not only to overcoming the COVID-19 pandemic but also to new and mutated infectious diseases that may arise in the future."
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