SK bioscience, a global innovative vaccine and biotech company committed to promoting human health from prevention to cure, announced today that it has signed a Simple Agreement for Future Equity (SAFE) totaling USD 2 million (KRW 2.78 billion) with Sunflower Therapeutics, a U.S. biotech company.

Startups and early-stage companies, especially in Silicon Valley, commonly secure their financing through SAFEs, which provide investors with rights to future equity without determining a share price at the initial investment stage. Investors receive equity when a priced investment round or liquidity event occurs, allowing them to secure a substantial stake with a minimal initial investment as the company’s valuation increases. The SAFE agreement was introduced in Korea in 2020.

Founded in 2018, Sunflower has developed its own yeast-based protein manufacturing technology, facilitating the development and production of diverse antigens and antibodies. The company’s proprietary yeast expression system enhances vaccine development and production efficiency, offering a cost-effective solution.

Sunflower is known for its innovative small-footprint in-vessel perfusion culture technology. Its perfusion culture technology supports high-density cell cultivation and enhances productivity compared to batch-based methods. It enables efficient and stable, high-yield production of various biological substances such as antibodies, antigens, enzymes, cytokines, and hormones. Sunflower’s equipment is capable of low-volume, multi-protein production.

The company has received multiple grants from the Bill & Melinda Gates Foundation to support their breakthrough technologies and collaborates with prestigious entities including the U.S. Department of Defense, global biopharma companies, and the Massachusetts Institute of Technology (MIT).

SK bioscience anticipates leveraging Sunflower’s technology to optimize its vaccine development and manufacturing process. Integrating Sunflower’s yeast culture system into its Andong L HOUSE, vaccine manufacturing plant, is projected to increase yields by up to 7.7 times while reducing production costs by 88.7 percent per dose compared to the existing process.

The SAFE agreement builds upon SK bioscience and Sunflower’s existing partnership, which began with a joint agreement last year to develop a human papillomavirus (HPV) vaccine. SK bioscience remains committed to supporting Sunflower’s advanced technologies and potential through SAFEs.

Additionally, SK bioscience aims to maximize its investment value in Sunflower´ through future IPOs, third-party mergers and acquisitions, and enhanced technical collaboration between two companies.

Dr. Kerry R. Love, Founder, CEO and President of Sunflower Therapeutics, said, “Our accessible, cutting-edge protein manufacturing solutions are moving the needle by reimagining the biologic development process.” She added, “We’re thrilled by SK bioscience’s expanded support and look forward to democratizing and supporting product development for vaccine producers across the globe with our next-generation manufacturing technologies, coupled with our thoughtful, resourceful services.”

Jaeyong Ahn, CEO of SK bioscience, said, “In this time where various infectious diseases threaten humanity, vaccine sovereignty is the key to protecting the safety of our people and enhancing national competition.” He added, “We are excited to deepen our relationship with Sunflower Therapeutics and make an impact on global health as we continue to develop efficacious, safe and cost-effective vaccines.”

In line with its mid- and long-term growth strategy, SK bioscience recently signed an agreement to acquire a controlling stake in German IDT Biologika, one of the top 10 global vaccine contract manufacturers. The company continues to accelerate investments to secure future growth engines, strengthen its global competitiveness, and explore diverse opportunities including joint ventures, mergers and acquisitions, and in- and out-licensing.