SK bioscience to invest $1.79 billion to expand manufacturing capabilities

SK bioscience Co. will invest $1.79 billion by 2027 to expand its contract manufacturing capabilities to strengthen its readiness for the next pandemic, expand its overseas operations, and seize new business opportunities.

The proposed investment is twice the amount the company had spent in the past five years.

Of the total investment, t half would be spent on research and development (R&D) and the construction of a new R&D campus in Songdo, Incheon, which is expected to be completed in 2025.

SK bioscience has manufactured the COVID-19 vaccines of AstraZeneca and Novavax in South Korea under a partnership deal.

The company is seeking to ink deals with major pharmaceutical companies within the year, according to SK bioscience CEO Ahn Jae-yong.

"A deal could come as early as within the first half of this year," he said.

Also, the company has been looking for a possible merger deal in the United States in the field of cell and gene therapy.

The company swung to a deficit for the January-March period as waning demand led to a drop in the production of licensed COVID-19 vaccines. Its loss amounted to 29.2 billion won, compared with a profit of 23.8 billion won a year ago.

Ahn expected the company to make a turnaround in three years after investing aggressively in building up the foundations for future growth.