SK bioscience to acquire German vaccine manufacturer IDT Biologika for $243 million

Industry

Published: 27 Jun. 2024, 10:27 Updated: 27 Jun. 2024, 16:27

SK bioscience to acquire German vaccine manufacturer IDT Biologika for $243 million

SK bioscience CEO Ahn Jae-yong speaks during a press conference on the company's acquisition of IDT Biologika, a German vaccine manufacturer, held in central Seoul on Thursday. [YONHAP]

SK bioscience will acquire IDT Biologika, a German vaccine contract manufacturer, for 227 million euros ($242.7 million), the vaccine developer said Wednesday, despite ongoing group-wide rebalancing attempts to streamline its business structure.

SK bioscience expects the acquisition to enhance its production capabilities, given IDT Biologika's presence in Germany — one of Europe's key vaccine production hubs — as well as in the United States. The acquisition is also expected to accelerate the Korean firm's expansion into new drug modalities, including cell and gene therapies.

With the signing of the deal with IDT's parent company Klocke Group, SK bioscience will secure a 60 percent stake in the company through its wholly-owned German subsidiary, according to the company.

The deal includes existing shares held by Klocke Group as well as newly issued shares worth 75 million euros, bringing the total amount of the acquisition to 227 million euros.

Klocke Group will retain the remaining 40 percent stake in IDT Biologika and will continue to participate in the company's operations. Simultaneously, the parent company will acquire a 1.9 percent stake in SK bioscience for 51 million euros.

IDT Biologika, valued at 440 million euros, is one of the 10 largest vaccine manufacturers globally. Founded in 1921, the company has a production site measuring 1.36 million square meters (336 acres) in Germany, as well as in Maryland in the United States.

“SK Group is indeed working on rebalancing its businesses sector by sector, and we’d like to say that [the acquisition decision] aligns with the overall direction of the group,” said SK bioscience CEO Ahn Jae-yong during a press conference held in central Seoul on Thursday.

“The point of rebalancing is streamlining [the businesses] and focusing on what’s important, so we believe that we should not miss this opportunity,” said Ahn.

SK bioscience has been struggling to secure its footing since the Covid-19 pandemic ended last year. The company logged 369.5 billion won ($266.5 million) in revenue last year, down 19 percent on year, and swung into the red with an operating loss of 12 billion won.

The company expects the acquisition to immediately drive its revenue this year, as IDT posted an annual revenue of 375 billion euros, or 410 billion won.

SK bioscience's share price took a steep surge in the main Kospi bourse after the announcement on Thursday morning. The share price reached 59,200 won mid-trading, up 19.96 percent from the previous trading day, before closing at 53,300 won, up 8 percent.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]