Biotech shares in Korea rise on buzz over local Mounjaro production
Rising speculation that Eli Lilly could produce its blockbuster weight-loss drug Mounjaro in Korea drove sharp gains in Kosdaq-listed biotech firm Peptron and drew renewed attention to SK Pharmteco on Friday, though the SK subsidiary declined to confirm.
Mounjaro is a treatment for Type 2 diabetes, which is also known to be effective for weight loss. If confirmed, it would mark the first time a Glucagon-Like Peptide-1 agent is produced here.
Peptron closed at 340,000 won ($231) on Friday, surging 10.39 percent from the previous session on expectations tied to potential Mounjaro production. During intraday trading, it soared to as high as 369,500 won.
Peptron is set to build a new plant in the Osong Advanced Medical Complex in Cheongju, North Chungcheong Province. The local biotech, specializing in peptide synthesis, has been collaborating with Eli Lilly on its technology SmartDepot, designed for the gradual release of medication. It signed a 14-month contract with the US pharma giant for technology evaluation in October.
The envisioned three-story plant in the medical complex will have a total floor area of 8,000 square meters and, once completed, will be capable of producing up to 10 million vials of long-acting injectable drugs annually. The plant construction is currently under review for approval by the authorities.
Industry sources also expect SK Biotech, a subsidiary of SK Pharmteco, to produce the peptide-based active pharmaceutical ingredients used in Mounjaro.
SK Pharmteco announced the construction of a new plant at its site in Sejong in September 2024, highlighting a major expansion of its small molecule and peptide production capabilities.
"This investment underscores SK Pharmteco’s commitment to meeting the growing demand for high-quality peptides and small molecules, essential components of many innovative therapies, demonstrating our reliability and dedication to the industry," the company said through a statement at the time.
The facility, scheduled to begin operations in 2026, could produce peptide-based APIs for Mounjaro. Being less than an hour's drive from Peptron's Osong plant, the APIs can be shipped there, allowing Peptron to take over to formulate the product into the final dosage form, industry sources say.
If SK Pharmteco seals an over five-year contract, the CDMO will be securing a 1 to 2 trillion won deal, which, at the upper end, is more than twice SK Pharmteco’s annual earnings of roughly 850 billion won.
An SK Pharmteco official declined to confirm, saying, “We cannot comment.”
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