SK Bioscience will acquire a 60% stake in German pharmaceutical contract manufacturing firm IDT Biologika GmbH for approximately 339 billion won ($244 million), the company said on June 27. IDT Biologika, a subsidiary of the Klocke Group, a German biopharmaceutical conglomerate, operates production sites in Germany, Maryland, and the United States. Through this acquisition, SK Bioscience aims to diversify its portfolio beyond vaccines and penetrate developed markets like the U.S. and Europe.
SK Bioscience expects the acquisition to boost earnings starting this year upon the deal’s completion. SK Bioscience, South Korea’s leading vaccine manufacturer, has faced massive operating losses post-pandemic. As for IDT Biologika, COVID-19 vaccine products represent less than 5% of its total revenue. The company also manufactures Merz’s botulinum toxin product XEOMIN in Germany, a leading product in the developed markets alongside Abbvie’s Allergan in the U.S. and Ipsen in France.
IDT Biologika reported last year’s revenue of €375 million ($400 million) and earnings before interest, taxes, depreciation, and amortization (EBITDA) of €16 million ($17 million). These figures are consistent with its 2022 performance when it outsourced COVID-19 vaccine production. In contrast, SK Bioscience posted revenue of 369.5 billion won ($266 million) and an operating loss of 1.2 billion won ($8.65 million) last year.
SK Bioscience plans to utilize IDT Biologika’s facilities in Germany and Maryland as bases for operations in Europe and North and Central America. The Andong production facility in North Gyeongsang Province will be utilized. The company has been producing and exporting finished products from the Andong facility. From now on, it will produce raw materials in Andong and manufacture finished products in the U.S. and Germany.
“IDT Biologika, founded in 1921, is recognized by regulatory agencies in the U.S. and Europe,” an SK Bioscience official said. “This acquisition marks a significant turning point for SK Bioscience in becoming a global entity.”
SK Bioscience and the Klocke Group will cooperate with IDT Biologika, with SK Bioscience’s German subsidiary acquiring a 60% stake, while the Klocke Group will retain 40% and acquire a 1.9% stake in SK Bioscience.
