SK bioscience explained the company’s sustainable growth strategy at investors meeting

SK will secure vaccine development capabilities and expand global network through the new strategy

SK bioscience announced a future growth strategy to secure global top-tier vaccine development capabilities on November 1st.

SK bioscience held a conference for domestic and international financial analyst and investors. Jaeyong Ahn, CEO of SK bioscience shared tasks and plans of ‘SKBS 3.0,’ a new sustainable growth strategy to leap forward as a global vaccine and biotech company, advancing into the global market beyond South Korea.

Jaeyong Ahn said “Although it is a difficult situation due to the deterioration of the internal and external business environment, we are implementing a business strategy to raise the vaccine R&D and production infrastructure to a global level in order to meet the expectations of stakeholders. Based on our accumulated capital and capacities, we will continue to practice the future growth strategy such as △responding COVID endemic △expanding vaccine business to global market △acquiring cell and gene therapy (CGT) and next-generation platform technology △strengthening global partnership, R&D and manufacturing infrastructure capabilities to prepare for the next pandemic.”

■ Strengthening vaccine business

SK bioscience plans to secure products and technology that will lead the endemic era by utilizing the platform of SKYCovione™, the first South Korean-developed COVID-19 vaccine. SKYCovione™ is based on recombinant protein vaccine technology which has been used for development of current vaccines including influenza, hepatitis B, and HPV. With proven efficacy and safety, SKYCovione™ can be stored in normal refrigeration conditions from 2 to 8 degrees Celsius with much longer storage period. SK bioscience plans to advance the overseas market since SKYCovione™ has proven its effectiveness against Omicron variants when administered as a booster.

SK bioscience currently also develops a vaccine candidate effective for the entire Sarbecovirus group to establish a broader protection system against COVID-19 variants and SARS in the future and a combination vaccine candidate that applies for both flu and COVID-19 at once.

Last April, SK bioscience also initiated preclinical development of an innovative binder protein compound designed to prevent and treat COVID-19 when sprayed into nasal passages with support by international organizations and in collaboration with world-renowned research institutes, such as International AIDS Vaccine Initiative (IAVI), Bill & Melinda Gates Foundation and IPD.

The supply of the flu vaccine ´SKYCellflu™’ which was temporarily stopped for manufacturing SKYCovione™ to overcome the pandemic, will be normalized from next year. SkyCellflu™, the world´s first cell-cultured quadrivalent influenza vaccine which has acquired the world first WHO (World Health Organization) PQ (Pre-qualification) certification as a cell-culture vaccine has the highest market share in Korea. It is expected to rapidly expand its domestic and overseas market share along with the resumption of supply.

‘SKYVaricella™,’ the world second WHO PQ acquired varicella vaccine, is also planned to be supplied to the international procurement market. SKYVaricella™ has already started to be supplied to Latin America by obtaining an order for a chickenpox vaccine from the Pan American Health Organization (PAHO), an international organization under the UN at the beginning of this year.

‘SKYZoster™’, the world second shingles vaccine which has the highest market share in Korea,

Secures competitiveness in consideration of the introduction of the National Immunization Program(NIP).

In addition, SKYTyphoid™, a typhoid vaccine developed in cooperation with the International Vaccine Institute (IVI), is also planned to be supplied worldwide after obtaining the WHO PQ.

SK bioscience will also continue to cooperate with global initiatives.

SK bioscience plans to extend a CDMO of the COVID-19 vaccine with Novavax and secures additional global CMO and CDMO partners.

■ Business expansion toward a global company

SK bioscience plans to further secure technologies in all areas of the cell and gene therapy (CGT) business to expand its business beyond vaccines to the bio sector. To achieve, CDMOs of global companies with existing CGT platforms, mergers and acquisitions (M&A), and establishment of joint ventures (JVs) are being proceeded currently.

In addition, SK bioscience will focus on securing the next-generation technology through partnerships, such as the recently announced agreement to develop the latest mRNA vaccine platform with international organizations and research institutes.

Through securing the mRNA technology, product development, and platform expansion, SK bioscience plans to establish a system that can develop vaccines against new infectious diseases within 100 days and supplies them within 6 months with global partners, including Bill & Melinda Gates Foundation, CEPI, and Hilleman Laboratories.

SK bioscience also operates ‘Glocalization’ project which transfers vaccine development, manufacturing, and production capabilities to each government and partner companies in the world to establish a vaccine manufacturing infrastructure for the needs in each region. The company is currently discussing in detail with various countries in the Middle East and Southeast Asia and planning to expand the target countries sequentially.

Qualitative and quantitative expansion of R&D and production infrastructure are also in progress.

The Global Research and Process Development (R&PD) Center in Songdo will be established to operate as a base for the global network and to sequentially secure the infrastructure for all areas of biopharmaceuticals. L-HOUSE, SK’s vaccine manufacturing plant, located in Andong, South Korea also is also planned to be expanded its production capacity up to 5 times compared to the current through large-scale expansion and more world-class production facility certifications such as US cGMP.

Jaeyong Ahn said, “SK bioscience was able to be what it is today as a result of hard working with a sense of mission to contribute to humanity when everyone says it is difficult. We will take the lead in creating an ecosystem for biopharmaceutical industry and invest strategically to become a global leader in responding to the next pandemic.”