German Vaccine, Toxin, and CGT CDMO
Acquires IDT Biologica in a Surprise Move
Possesses Production History for US and EU Response Products
Annual Sales of 410 Billion KRW... Higher than SK Bioscience
Capable of Serving as a North American Expansion Hub
SK Bioscience has acquired a local European vaccine contract development and manufacturing organization (CDMO) company to secure a global production base.
On the 27th, SK Bioscience announced that it acquired IDT Biologika, a German CDMO specializing in vaccines, cell and gene therapies (CGT), and botulinum toxins, along with its affiliate TEW. The acquisition was made through SK Bioscience’s wholly-owned German subsidiary, SK Bioscience Germany GmbH.
SK Bioscience will purchase existing shares held by the German Cloche Group, which owns IDT, worth approximately KRW 206.7 billion, new shares issued through a capital increase amounting to EUR 75 million (about KRW 111.9 billion), and TEW’s existing shares worth about KRW 20.4 billion, totaling KRW 339 billion. Upon completion of the share acquisition, SK Bioscience will become the largest shareholder with a 60.6% stake in IDT. The company values IDT at approximately KRW 656 billion.
The Cloche Group will retain about 40% of IDT’s shares and invest KRW 75.7 billion to acquire a 1.9% stake in SK Bioscience through a third-party allotment capital increase. This means that the actual funds SK Bioscience is investing in the IDT acquisition amount to around KRW 263 billion. Additionally, through this cross-shareholding acquisition, the two companies plan to establish a close partnership and jointly operate IDT. The company stated, "IDT is a global top 10 company in vaccine contract manufacturing (CMO). With this acquisition, we have secured new momentum and are preparing for a full-scale leap toward the global market."
IDT Biologika, established in 1921, is a company with over 100 years of expertise and approximately 1,800 employees. Based on a track record recognized by key global pharmaceutical regulatory agencies in the US and Europe, it has production capabilities for vaccines, biopharmaceutical raw materials, and finished products from clinical to commercial stages. During the COVID-19 pandemic, it served as a CMO for COVID-19 vaccines such as Janssen and AstraZeneca, and in the toxin field, it is the CMO for Germany’s Merz’s Xeomin. Notably, it possesses production capabilities for oncolytic virus therapeutics, which is expected to serve as a foundation for SK Bioscience’s future growth engine in the CGT business.
SK Bioscience’s 'Glocalization' Growth Accelerates
With this acquisition, SK Bioscience will immediately more than double its sales while achieving production capabilities that meet the quality standards of advanced countries such as the US and Europe, as well as building integrated infrastructure connecting global markets.
Despite the transition to an endemic phase last year, IDT recorded sales of EUR 275 million (approximately KRW 410 billion) in 2022, a decrease of only 11.9% compared to EUR 312 million in 2021 when it was still producing COVID-19 vaccines as a CMO. This performance exceeds SK Bioscience’s KRW 369.5 billion sales last year. Particularly, 95% of IDT’s sales come from product lines other than COVID-19 vaccines, and existing contracts are maintained, indicating expectations for new growth. Earnings before interest, taxes, depreciation, and amortization (EBITDA) were EUR 33 million in 2022 and EUR 16 million (about KRW 2.4 billion) last year.
In terms of quality, it is significant that IDT has facilities certified with the current Good Manufacturing Practice (cGMP) standards of the US Food and Drug Administration (FDA). SK Bioscience’s vaccine production plant, L House in Andong, Gyeongbuk, has received the European Union (EU) GMP certification but has not yet obtained cGMP certification. The company explained that through this acquisition, it secured manufacturing infrastructure at the cGMP level, enabling portfolio expansion targeting advanced countries and entry into new bio sectors such as oncolytic viruses and CGT.
Furthermore, amid steady increases in product demand, SK Bioscience has been expanding production capacity by extending the Andong L House facility, and this acquisition secures production capabilities for various pipelines. IDT also has subsidiaries in the US, so it is expected to serve as a base for expansion not only in Europe but also in North and Central America.
Jaeyong Ahn, CEO of SK Bioscience, said, “This acquisition aims to establish a new growth axis for the company and accelerate global market entry. Since it is an acquisition with high business value relative to the investment, including immediate revenue gains, securing global bases, and efficient production facilities, we will communicate with the market to enhance corporate value as well.”
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