During a recent visit to a US biological manufacturing facility, Lotte Group Chairman Shin Dong-bin emphasized the critical role of the biopharmaceutical sector in driving the conglomerate's expansion.
The group reported that Shin toured Lotte Biologics' Syracuse Bio Campus in New York this past Sunday, examining the plant's antibody-drug conjugate (ADC) production facilities. This marked Shin's initial visit to the facility since ADC manufacturing commenced in April.
The Syracuse facility serves as the primary production hub for Lotte Biologics, a biologics contract development and manufacturing organization (CDMO) founded in 2022.
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In 2023, Lotte Biologics purchased the Syracuse facility from Bristol Myers Squibb and subsequently allocated $100 million toward constructing ADC manufacturing capabilities. Following the completion of an ADC supply agreement with an Asian biotechnology company, the facility launched comprehensive operations in April.
This facility may become crucial for Lotte Biologics' success, particularly given the recent announcement by the U.S. Trump administration of a 100 percent import duty on pharmaceuticals, with exceptions for companies operating manufacturing plants in the United States or those currently establishing such facilities. As other South Korean biopharmaceutical companies work to mitigate these new tariff challenges, the Syracuse facility has protected Lotte Biologics from these effects, enabling the company to aggressively seek additional contracts within the American marketplace.
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The organization's emphasis on antibody-drug conjugates is playing a key role in its positive prospects.
These conjugates are capturing attention within the biopharmaceutical sector as an advanced form of precision cancer treatment that accurately transports medication to cancerous cells while protecting normal tissue from harm.
Lotte Biologics has stated that its antibody-drug conjugate manufacturing facilities can deliver comprehensive contract development and manufacturing organization services, spanning from clinical trials through to full-scale commercial manufacturing. The facility features integrated manufacturing and purification systems, including conjugation vessels with capacities reaching 1,000 liters, and provides analytical testing services as well.
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Being new to the contract development and manufacturing organization sector, Lotte Biologics is constructing its own facility in Incheon, aiming to start commercial operations by 2027. Throughout this year, Lotte Biologics has taken part in significant international conferences including the JP Morgan Healthcare Conference, World ADC Asia, BIO USA and BIO Japan. The organization intends to connect with prospective customers through participation in CPHI Worldwide in Germany during October and World ADC in the US in November.
Lotte Group has made substantial investments in Lotte Biologics, viewing it as a new growth engine within its predominantly retail-focused business portfolio. Beginning in 2023, Lotte Corp., serving as the group's parent company, has invested 624.6 billion won ($454 million) across its subsidiary companies, with Lotte Biologics receiving 72.8 percent of this investment. Presently, Shin Yoo-yeol, who is Shin Dong-bin's eldest son, serves as Lotte Biologics' head of global strategy.