Lotte Biologics has completed the acquisition of Bristol Myers Squibb’s (BMS) biopharmaceutical manufacturing facility in Syracuse, New York, USA, taking the first step in entering the bioindustry.
Lotte Biologics has completed the acquisition of BMS’ facility in Syracuse, USA
The company previously signed a deal to acquire BMS’ biopharmaceutical manufacturing facility for $160 million in May last year.
“As of December 31 of last year, all acquisition procedures for the facility were complete and restarted last Sunday as the Lotte Biologics Syracuse Plant,” the company said. “Typically, when entering the contract manufacturing and development organization (CDMO) business, it takes at least five years to reach commercial production.”
However, the company reduced the time to market to less than a year by acquiring the Syracuse facility, which has a quality system that integrates the expertise of global pharmaceutical companies, it added.
In addition, Lotte Biologics said it has retained 99.2 percent of existing BMS employees, including core personnel, with more than 15 years of average bios experience.
The Company emphasized that it will continue to strengthen its competitiveness in the CDMO market by actively utilizing the human resources of the Syracuse facility, which has witnessed the biopharmaceutical development, approval and commercial production of BMS.
In particular, Lotte Biologics can expect stable sales and profits after entering the market in 2023. In addition to acquiring the Syracuse facility, BMS signed a multi-year CDMO agreement with Lotte Biologics.
Accordingly, the company will continuously produce BMS products from January.
Upon the successful completion of the acquisition, Lotte Biologics plans to make an additional investment of approximately $70 million and hire 70 new employees at its Syracuse facility.
With the new investment and employees, the company will expand its manufacturing facilities and look for new business opportunities such as finished drug products and antibody-drug conjugates.
“Based on the successful acquisition of the Syracuse facility, Lotte Biologics will bring innovative medicines to patients and grow into a global CDMO company with sales of 1.5 trillion won by 2030, an operating margin of 30 percent and an enterprise value of 20 trillion won Won,” said Lee Won-jik, CEO of Lotte Biologics.