Orion invests in TB vaccine joint venture

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Orion invests in TB vaccine joint venture

Shandong Lukang Haoliyou Biotechnology Development CEO Baik Yong-un, left, and Quratis CEO Cho Kwan-gu pose for a photo after signing an agreement to jointly develop a tuberculosis vaccine on Wednesday. [ORION HOLDINGS]

Shandong Lukang Haoliyou Biotechnology Development CEO Baik Yong-un, left, and Quratis CEO Cho Kwan-gu pose for a photo after signing an agreement to jointly develop a tuberculosis vaccine on Wednesday. [ORION HOLDINGS]

 
Orion Holdings will invest 200 billion won ($167 million) in a new joint venture with local vaccine maker Quratis to develop a tuberculosis vaccine for adults.
 
Orion Holdings, parent of Choco Pie manufacturer Orion, announced that its joint venture Shandong Lukang Haoliyou Biotechnology Development signed an agreement Wednesday with Seoul-based vaccine maker Quratis to form another joint venture and develop a tuberculosis vaccine for adults.
 
Shandong Lukang Haoliyou Biotechnology Development is 65 percent owned by Orion Holdings and 35 percent by Jining-based Shandong Lukang Pharmaceutical. 
 
The investment will be made by Orion Holdings, and it will get a stake in the new venture that will be established with the Shandong-based bio company and Qurantis. However, the specific percentage wasn't disclosed. 
 
The Bacillus Calmette–Guérin (BCG) vaccine is used in infants to protect against tuberculosis. The BCG vaccine is effective only 10 to 15 years, and there is no vaccine for adults, according to Orion Holdings. It says China is a big market since there are some 350 million people living with tuberculosis.  
 
The 200-billion-won investment will fund vaccine development and be used to build a 10,000-pyeong (355,830-square-feet) vaccine manufacturing plant in Jining, starting construction in the first half of this year. 
 
Quratis will transfer technology needed to build the factory to the joint venture and help it develop a vaccine. It is Korea’s first company to produce meaningful results in clinical trials of a tuberculosis vaccine for adults.
 
“We are actively working to discover excellent bio technologies of Korean companies and expanding to the Chinese market,” said a spokesperson for Orion Holdings. “We plan to work on developing and commercializing the tuberculosis vaccine and also developing new technologies related to chemical and biopharmaceutical drugs.”

BY LEE TAE-HEE [lee.taehee2@joongang.co.kr]
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