Lotte Biologics looks to go public by 2027-28, build third plant

BARCELONA, Spain — Lotte Biologics, a biopharmaceutical contract manufacturer, aims to go public by around 2027 to 2028, according to its CEO.

Lotte Biologics CEO Richard Lee speaks during a press event held in Barcelona, where the CPHI Worldwide 2023 took place, on Wednesday. [LOTTE BIOLOGICS]

BARCELONA, Spain — Lotte Biologics, a biopharmaceutical contract manufacturer, aims to go public by around 2027 to 2028, according to its CEO.

“The current plan is to build the first and second production plants with the resources we have, and later utilize the capital raised from the initial public offering for the third plant,” said Lotte Biologics CEO Richard Lee during a press event held in Barcelona, where the CPHI Worldwide 2023 took place.

Lotte Biologics announced in January it would build three new plants in Incheon with a combined production capacity of 360,000 liters by 2030. The company has a production site in Syracuse, New York, which it acquired from Bristol Myers Squibb for $160 million last year.

Lotte Biologics, founded last year, set up a dedicated booth at this year’s CPHI, the world’s largest pharmaceutical trade show. This is the second time that the company has participated in the annual event.

Lee said that Lotte Biologics’ primary focus for this year’s CPHI was to enhance global recognition for the Lotte brand.

Lotte Biologics' exhibition booth at CPHI Worldwide 2023 [SHIN HA-NEE]

“It has been just over a year since our foundation, and if we are able to get our name out there for the next three years during this honeymoon period, I’d call that a success,” said Lee.

The CEO cited the Syracuse plant’s extensive track records and its strategy to remain a “pure CDMO [contract development and manufacturing organization]” as Lotte Biologics’ key strengths over the competitors.

“The goal is to position ourselves as a manufacturer that prioritizes quality first and foremost,” stressed Lee.

“We will leave developing biosimilar drugs or other research and development activities to other pharmaceutical companies, and remain a pure CDMO.”

Having a production site in the United States, which is the biggest market for pharmaceuticals, is also a huge advantage, according to the company.

Lotte Biologics aims to achieve 1.5 trillion won ($1.11 billion) in revenue in the next decade, with antibody drugs taking 90 percent and antibody-drug conjugates (ADC) the rest.

“We expect the ADC segment to grow exponentially in the future,” said Lee, adding that the geopolitical situation may spell opportunity for the company as most ADC operations at this point are taking place in China.

The CDMO will build a facility dedicated to ADC, which enables improved anti-cancer therapeutic effects with minimum damage to non-tumor cells, at its Syracuse site. The facility is set to begin operation by 2025.

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