Encell Secures 5.7 Billion KRW Customized AAV Gene Therapy CDMO Contract

Encell, a company specializing in advanced biopharmaceutical contract development and manufacturing (CDMO) and new drug development, announced on July 3 that it has signed a CDMO contract worth approximately 5.7 billion KRW with the Gene and Cell Therapy Strategy Research Group at the Korea Research Institute of Bioscience and Biotechnology.

This contract amounts to about 5.7 billion KRW, which is nearly 80% of Encell's total sales of 7.2 billion KRW last year, making it the largest single contract in the company's history. The contract period runs until May 31, 2029. Through this agreement, Encell will collaborate with the Korea Research Institute of Bioscience and Biotechnology to establish a clinical manufacturing platform for the development and production of customized adeno-associated virus (AAV) gene therapies. AAV is widely used in the development of in vivo gene therapies due to its low immunogenicity and safety, as it does not integrate into the patient's genome.

According to the report "Current Status and Prospects of the Global Gene Therapy Market" published by the Korea Biotechnology Industry Organization in May, the global gene therapy market is projected to grow from approximately 7.2 billion USD (about 10 trillion KRW) in 2023 to about 36.6 billion USD (about 50 trillion KRW) in 2032, with an average annual growth rate of 19.4% over nine years. This outlook underscores the need for proactive development capabilities at the national level to remain competitive with global companies.

Encell is the only company in Korea capable of simultaneously producing both cells and viruses at a global-standard GMP facility, providing optimal CDMO solutions to clients through its one-stop service and differentiated production and quality management systems. Leveraging this contract, Encell plans to further intensify its marketing efforts to secure additional CDMO orders in the AAV sector and will do its utmost to build platforms tailored to client needs and deliver satisfactory results.

Additionally, the Korea Research Institute of Bioscience and Biotechnology aims to establish a clinical manufacturing platform for customized AAV gene therapy development through its collaboration with Encell, laying the groundwork for the introduction of AAV therapies commercialized with domestic core technology in Korea.

Jang Jongwook, CEO of Encell, stated, "Encell is the leading company in Korea's cell and gene therapy (CGT) CDMO sector in terms of sales and market share. Based on our unrivaled track record, we have successfully secured this contract to build a platform for customized AAV gene therapy development. Together with the Korea Research Institute of Bioscience and Biotechnology, we will leverage our outstanding technological capabilities to deliver world-class results for the introduction of AAV-based therapies, which are gaining global attention."

Meanwhile, Encell has been expanding its collaborations with domestic and international advanced pharmaceutical development companies, including signing a CMO contract with a major global pharmaceutical company in December last year, following deals with Novartis and Janssen.