SK bioscience announces new building and profit plunge

A bird's-eye view of SK bioscience's vaccine facility in Songdo, Incheon [SK BIOSCIENCE]

SK bioscience will invest 325.7 billion won ($258 million) in building a manufacturing facility in Songdo, Incheon, aiming to become a key player in the vaccine industry.

The facility, which will be built on a 30,414-square-meter site in Songdo, will have all equipment to conduct research, as well as a small-size manufacturing plant for pilot products.

Construction will be finished in the first half of 2025. When completed, SK bioscience’s headquarters, which is currently based in Panggyo, Gyeonggi, will be moved there.

An Open Lab for business meetings with its potential partner companies will be built in the facility,

SK bioscience cooperated with various international organizations, including the Bill & Melinda Gates Foundation, the Coalition for Epidemic Preparedness Innovations and International Vaccine Institute to develop SKYCovione, Korea’s first domestically-developed Covid-19 vaccine.

The facility is not only for the vaccine but also cell and gene therapy and mRNA, or messenger ribonucleic acid, technology, SK bioscience said.

“Our Songdo facility will be the dream stage for the advancement of the world’s biopharmaceutical and vaccine industry,” said SK bioscience CEO Ahn Jae-yong.

On Wednesday, SK bioscience reported a 65.5 percent drop in its 2022 net profit on the slowing demand for Covid-19 vaccines.

Net profit stood at 122.5 billion won last year, down 65.5 percent on year. It fell short of the market forecast of 133.2 billion won compiled by FnGuide.

Revenues plunged 51 percent to 456.7 billion won while operating profit plummeted 76 percent to 115 billion won. Both figures failed to meet the market expectations.

BY SARAH CHEA [chea.sarah@joongang.co.kr]