[INTERVIEW] Matica to capitalize on growing cell and gene therapy CDMO market

Matica Biotechnology, a U.S. subsidiary of CHA Biotech, is aiming to capitalize on the growing market of cell and gene therapies by offering a contract manufacturing and development service for the drug makers.

Matica Biotechnology CEO Song Yun-jeong, left, and Yang Eun-young, chief business officer at CHA Biotech pose after an interview on Jan. 12 during the annual J.P. Morgan Healthcare Conference in San Francisco. [PARK EUN-JEE]

SAN FRANCISCO - Matica Biotechnology, a U.S. subsidiary of CHA Biotech, is aiming to capitalize on the growing market of cell and gene therapies by offering a contract manufacturing and development service for the drug makers. Since establishing a manufacturing facility in Texas last May, it has been serving a number of biopharmaceutical companies that specialize in cell and gene-based treatments.

Despite being a new kid on the block, Matica Biotechnology CEO Song Yun-jeong said that the bio manufacturer has a competitive edge since its parent company CHA Biotech has conducted extensive research and development into both the knowledge and manufacturing technology required for a range of cell and gene therapies, including stem cells and immunocyte.

The Korea JoongAng Daily sat down with Matica Biotechnology CEO Song and Yang Eun-young, chief business officer at CHA Biotech, to discuss the ongoing business and future strategies during the annual J.P. Morgan Healthcare Conference in San Francisco earlier this month.

Song took the helm of Matica in 2021, following stints at Samsung Advanced Institute of Technology for developing novel drugs and Sanofi. The CEO graduated from Seoul National University (SNU)’s College of Medicine.

Yang built her career at Roche and Samsung Biologics after graduating from SNU with a degree in pharmacy.

The following are edited excerpts of the interview.

Are you seeing lots of orders coming from the Texas site? Song: It's regrettable because we are not allowed to give specific number of our clients. But what I can tell you is that we won numerous orders. Several of them are already finished. Cell and gene therapy companies tend to be small in size. For those companies, their top concern, of course, is the quality of service. But also critical is that the service should be streamlined without any bottleneck. If there are different contract development and manufacturing organizations (CDMOs), there could be a delay or miscommunication among the providers. For instance, when one contract manufacturer finished developing plasmid molecules based on the request of a client, the information should be shared with other manufacturers making viruses. But in many cases, the procedure doesn't go as smoothly as it should be, and unexpected friction and problems occur during the process. To overcome challenges, we are trying to establish an alliance with partnered companies. One way to do so is to sign an agreement with contract research organizations for clinical trials. Another way is to partner with a biotechnology firm and incorporate their technology into the manufacturing process to verify the technology. I believe that Matica will be able to announce one or two of such partnerships within this year.

Is the Texas facility operating at full capacity? Song: Typically, it takes two to three years to operate a factory at full capacity. This is our first factory, and we didn't have a bunch of clients in the beginning. But based on the current pace, I think we could reach full capacity in two years. Yang: In most cases, it takes at least three years to ramp up capacity from the inception of the factory. Given that it has been only 8 months since the factory fulfilled GMP (good manufacturing practice) standards recognized by the U.S. Food and Drug Administration, our ramp-up pace is incredible.

In recent years, new CDMOs catering to cell and gene therapy makers are popping up around the world. Will this heat up competition or lower profitability? Yang: CDMOs specializing in cell and gene therapies are still fewer than those for antibody-related treatments. And the standards and requirement for the cell and gene-related facilities are much higher and complex, so it is not an easy market to enter. Song: In the U.S., there are some GMP-ready facilities affiliated with hospitals and research institutions, but they are mostly small-scale. They could support the development and manufacturing for a handful of labs in the research stage, but many of them are not capable of handling the orders aiming for commercialization. This is why our target clients find it unsatisfying, and we are trying to meet the unmet needs. So, we aim to build a value chain that could support our clients from the research stage to commercialization.

How can CHA Biotech and Matica create synergy? Yang: CHA Biotech is planning to adopt chimeric antigen receptors (CARs). In constructing the CARs, viral vectors play a critical role. So when we do research on the treatment, we can collaborate with Matica. Further partnership could take place when CHA Biotech completes its manufacturing facility in Pangyo, Gyeonggi, between 2024 and 2025. The technology that Matica Biotechnology established could be used in the Cell Gene Biobank facility. It is basically a CDMO facility for cell and gene therapy and a storage facility for stem cells, which will be responsible for producing cell and gene therapies, mRNA, viral vector and plasmid DNA treatments.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]