SK pharmteco secures $1.4bn GLP-1 deal

Reported last week by the Korean press, contract development and manufacturing organization (CDMO) SK pharmteco has hopped on the GLP-1 train with a 2 trillion won ($1.4 billion) obesity treatment order from an undisclosed firm.

As per the agreement, the California-based company will leverage its $260 million peptide production plant in Sejong, South Korea, which is expected to open in 2026. Announced in October 2024, the five-story 136,000 square-foot facility will have more than 300 employees.

GLP-1 drugs for diabetes and weight loss have recently become blockbuster pharmaceuticals, with Lilly and Novo Nordisk leading the market. The sharp increase in demand has caused shortages, prompting both companies to continually expand their capacity to meet the rising needs.

Recently, Novo Holdings – the holding and investment company responsible for managing Novo Nordisk – was cleared by the US Federal Trade Commission (FTC) to acquire CDMO Catalent. The deal is expected to close soon.

In other news

SK pharmteco has streamlined its operations by unifying all its brands into one. According to the cell and gene therapy (CGT)-focused CDMO, these individual firms (SK biotek, SK biotek Ireland, Center for Breakthrough Medicines, Yposkesi, AMPAC Fine Chemicals, and AMPAC Analytical) will continue to operate individually.

“Our rebrand marks a pivotal moment for SK pharmteco, aligning our identity with our mission to deliver transformative medicines to patients and our commitment to providing exceptional service to our customers,” said Liza Rivera, vice president of marketing and communications, SK pharmteco.

"This decentralized approach avoids the need for a top-heavy 'control tower' or senior-level team, allowing us to provide a consistent SK pharmteco experience regardless of location," Rivera told BioProcess Insider. "By having our experts embedded at the sites, we can provide immediate, localized support while maintaining a centralized focus on quality, compliance, and innovation."

From a facility standpoint, the firm has invested heavily, including a $260 million commitment in Sejong, a 20,000 square-foot GMP testing facility in King of Prussia, Pennsylvania, and the expansion of a manufacturing plant in Swords, Ireland.

The firm launched lentiviral vector (LVV) analytical services in the US in 2024 and partnered with Cryoport to provide fully integrated logistics and supply-chain services.

The CDMO plans to announce more facility expansion news in 2025, focusing on campuses in California, Ireland, and South Korea.

Also in the coming year, Rivera told us that SK pharmteco seeks "to increase brand awareness and recognition within the CDMO industry significantly. This includes becoming a household name among pharmaceutical and biotech companies and establishing SK pharmteco as the 'go-to' partner for manufacturers seeking to produce life-saving therapies."