SK Bioscience CEO Jae-Yong Ahn: “Acquisition of Germany’s IDT Gains Us Five Crucial Years”

On the 27th, Ahn discussed the acquisition at a press conference, noting that it provides SK Bioscience with the necessary five years to expand its Andong plant and secure top-tier production facilities. The company signed an agreement the previous day with German pharmaceutical and biotech company Klöcke Group to acquire a controlling stake in IDT Biologika. IDT, which operates in Germany and the United States, focuses on vaccine production and is known for producing the world’s first oncolytic virus therapy, Imlygic. The company’s value is estimated at approximately KRW 656 billion (USD 504 million). 

SK Bioscience will acquire a 60% stake in IDT for KRW 339 billion (USD 260 million), becoming the majority shareholder. This acquisition involves purchasing part of the old shares from Klöcke Group and KRW 112 billion (approximately EUR 75 million) in new shares issued through a capital increase. 

Additionally, Klöcke Group will invest approximately KRW 76 billion (USD 58 million) to acquire a new 1.9% stake in SK Bioscience while retaining a 40% stake in IDT. Consequently, SK Bioscience will acquire IDT for approximately KRW 263 billion (USD 202 million) in cash. 

“We are acquiring a company with state-of-the-art production facilities, exceptional bio-talent, and a robust customer network at an opportune time and price,” Ahn stated. “The key point is that Klöcke Group is not exiting but rather growing together with us, also investing in SK Bioscience.” 

Ahn explained that this acquisition aligns with SK Group’s rebalancing efforts, which aim to optimize the group’s portfolio. He reaffirmed the company’s commitment to the vaccine business, emphasizing its significance in preparing for future pandemics and aligning with the group’s social values. 

“The core of rebalancing is about choice and focus, but it is crucial not to miss opportunities,” Ahn added. “The acquisition of IDT represents a well-executed opportunity we couldn’t afford to miss.” 

Strategically, the acquisition is set to accelerate SK Bioscience’s growth strategy, SKBS 3.0, which includes five key initiatives: expanding the vaccine portfolio, strengthening manufacturing R&D and infrastructure, expanding global production facilities, preparing for future pandemics, and promoting cell and gene therapy (CGT). 

“The most immediate impact is the enhancement of our manufacturing infrastructure, signifying our earnest entry into the CDMO space,” Ahn noted. He highlighted the application of advanced technologies from the Songdo R&D center, set to be completed in May next year, to both the Andong plant and IDT facilities. This integration is expected to complete SK Bioscience’s global expansion strategy. 

Ahn clarified that the acquisition of IDT does not mean SK Bioscience will transition entirely to a CDMO business model. Instead, the facilities will be used for both producing SK Bioscience’s own products and expanding its CDMO operations. 

“I have heard many ask why SK Bioscience has not seen tangible results since its IPO in 2021, but after a long wait, we have found an excellent partner,” Ahn said. “Through joint management with the existing majority shareholder, we aim to become a truly global company.” 

The acquisition of IDT Biologika represents a significant milestone for SK Bioscience, enhancing its production capabilities and positioning it for substantial growth in the global biopharmaceutical market. With a clear focus on strategic growth and innovation, SK Bioscience is set to play a pivotal role in the future of vaccine production and global health preparedness.