South Korean conglomerate Lotte Group’s pharmaceutical subsidiary, Lotte BioPharmaceuticals, is betting on global drug production shifting away from China due to escalating geopolitical tensions and tariff uncertainties.
CEO of Lotte BioPharmaceuticals, James Park, revealed in an interview with Bloomberg TV that the company, through its acquisition of BMS BioPharma in Syracuse, New York in 2022, made its foray into the pharmaceutical industry. This move positioned the contract manufacturer as an alternative option for pharmaceutical companies seeking to mitigate supply chain risks.
Despite entering the Contract Development and Manufacturing Organization (CDMO) sector relatively late, Lotte BioPharmaceuticals secured early orders through this acquisition. Park mentioned that this shift in the supply chain could potentially bring in more orders from the U.S. and support the company’s goal of conducting its initial public offering (IPO) in South Korea within a few years.
Lotte BioPharmaceuticals stated that an increasing number of clients who previously utilized Chinese CDMOs are now opting for production in the U.S. with Lotte BioPharmaceuticals.
“From this perspective, we are making progress, with European pharmaceutical companies also showing interest in us,” he said.
In January this year, Lotte BioPharmaceuticals reached an agreement with Japan’s Lotte Medical Co., Ltd. for the production of cancer therapies. Previously, the company had established partnerships last year with Ottimo Pharma in London and Asimov Pharmaceuticals in Boston.
Lotte Group’s facility in Syracuse is currently focused on producing Antibody-Drug Conjugates (ADCs) – targeted cancer drugs known as “biological missiles”. Major pharmaceutical companies are increasingly developing and selling this therapy as a new breakthrough drug in the market.
The group is also constructing a $1 billion “super hub” in South Korea, expected to commence operations in April 2027 with a production capacity of 120,000 liters. Lotte plans to utilize this new production base to manufacture biosimilar versions of several blockbuster drugs whose patents are nearing expiration.
According to Park, potential production agreements may include biosimilar versions of blockbuster drugs for Alzheimer’s disease and Merck’s cancer drug Keytruda. Keytruda’s critical patents are set to expire starting in 2028, allowing biosimilar drugs to potentially enter the market at prices up to 50% lower than the original.
“We are currently in the pre-sale stage this year, but we have indeed attracted some customers requiring larger volume orders,” James Park remarked.