SK Pharmteco starts groundwork on an IPO

SK Pharmteco, a biopharmaceutical subsidiary of SK Group, will prepare for a pre-IPO with the aim of hitting $2 billion in revenue by 2025.

SK Pharmteco headquarters in Sacramento, California [SK PHARMTECO]

SK Pharmteco, a biopharmaceutical subsidiary of SK Group, will prepare for a pre-initial public offering (IPO) with the aim of hitting $2 billion in revenue by 2025.

The company announced its pre-IPO plans at the J.P. Morgan Health Care Conference on Monday.

SK Pharmteco attended the conference for the first time and was the only Korean company to participate in the presentation sessionfor unlisted companies preparing to go public in a year or two.

Aslam Malik, CEO of SK Pharmteco [SK PHARMTECO]

"In 2021, SK Pharmteco’s forecast sales reached an all-time high of $740 million, a whopping 7.5 times growth from 2017," said CEO Aslam Malik.

The company wants to become one of the five leading global contract development manufacturing organizations (CDMOs) by 2025.

"SK Pharmteco is aiming to become a CDMO with annual sales of $2 billion by 2025, leveraging the cell and gene therapy business as the new growth engine," Malik said.

SK Pharmteco owns eight factories in North America, Europe and Asia, as well as five research and development centers. It plans to increase its manufacturing capacity by 50 percent from the current 1,000 cubic meters through 2025, with products that include a range of raw pharmaceutical materials for medicines including anticancer drugs and Covid-19 treatments.

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