LOTTE BIOLOGICS Completes Acquisition of Biologics Manufacturing Plant in Syracuse, NY

■ Completion of acquisition of BMS biopharmaceutical production plant in Syracuse, NY, USA

■ Secured talent pool and stable operations by retaining 99.2% of employees with properly established GMP culture 

■ Acquisition of plant currently in operation will generate immediate sales in 2023

■ Target revenue of 1.5 trillion KRW in 2030, 30% operating profit margin, 20 trillion KRW market cap

LOTTE BIOLOGICS is now the new owner of a biopharmaceutical production facility (the “Syracuse Plant” or “Plant”) acquired from global biopharmaceutical company, Bristol Myers Squibb, in Syracuse, New York for $160 million (approx. 208 billion KRW) as of January 1st, 2023.

In most cases, when a new firm enters the CDMO business by building a new plant, the entire process from establishment to commercial production takes at least five years. The overseas acquisition process itself takes more than a year on average, but LOTTE BIOLOGICS completed its acquisition in just eight months with only a small, newly established corporate structure.

In addition, LOTTE BIOLOGICS retained 99.2% of the existing BMS employees at the Plant, including key personnel with more than 15 years of experience in the industry, as well as outstanding production facilities. LOTTE will continue to strengthen its competitiveness in the CDMO market by actively utilizing the highly experienced talent pool of the Syracuse plant, who have experience in BMS' biopharmaceutical development, approval, and commercial production. “Syracuse employees welcome LOTTE’s acquisition of the Syracuse Plant and are encouraged by the opportunity to grow together with LOTTE BIOLOGICS,” said Michael Hausladen, General Manager of LOTTE BIOLOGICS USA. 

Another noteworthy aspect of LOTTE BIOLOGICS' acquisition of the Syracuse Plant is that it acquired a production plant that is already operating successfully. BMS recognized LOTTE BIOLOGICS as a stable partner and entrusted LOTTE with multiple years’ worth of orders for biopharmaceuticals. The ongoing production of products currently being produced at the plant and the consignment production of additional biopharmaceuticals will commence immediately starting in January 2023.  As a result, LOTTE BIOLOGICS can expect stable revenue and profits upon entering the market in 2023. 

In addition, with the successful completion of the acquisition, additional investments in the Syracuse Plant are expected to take shape. Currently, the Syracuse Plant can produce a total of 35,000 liters of antibody Drug Substance (DS).  LOTTE BIOLOGICS is actively reviewing expansion plans for new fields and additional production facilities for Drug Product (DP) and Antibody Drug Conjugates (ADC). Moving forward, the company plans to invest about 70 million dollars and recruit 70 new employees.

According to CEO Richard Lee, “Based on the successful acquisition of the Syracuse Plant, LOTTE BIOLOGICS will emerge as a global CDMO that can achieve 1.5 trillion KRW in sales, a 30% operating margin, and a corporate value of 20 trillion KRW by 2030 by providing innovative medicines to patients.  We will continue to grow at a rapid pace.” Additionally, Mr. Lee also revealed his ambition to establish LOTTE BIOLOGICS as a new growth engine for the LOTTE Group by partnering with a number of global pharmaceutical companies and bio ventures.

LOTTE BIOLOGICS will also be participating in the 2023 JP Morgan Healthcare Conference to be held in San Francisco from January 9th to 12th. LOTTE BIOLOGICS was asked to attend this invitation-only event by JPMorgan even though the company was established less than a year ago.  CEO Richard Lee will be presenting in-person at the conference. The presentation is scheduled to run approximately 25 minutes starting from 3:30 pm PST on January 10, and will elaborate on the current status of LOTTE BIOLOGICS' CDMO operations as well as its mid to long-term plans.