SK bioscience acquires German vaccine contract manufacturer IDT Biologika

[Photo provided by SK bioscience]

SK bioscience has announced the acquisition of IDT Biologika, a top-tier German player in contract manufacturing and development of vaccine products. This acquisition marks a landmark investment in the sector by the South Korean firm to bolster its global presence in the vaccine production industry.

On Thursday, SK bioscience disclosed that it has entered into a definitive agreement to acquire a controlling interest in IDT Biologika from Klocke Group, a pharmaceutical and biotechnology company. According to the press release, IDT Biologika is valued at about 656 billion won ($509 million).

Through a newly established 100 percent subsidiary in Germany, SK bioscience will purchase both existing shares held by Klocke Group and newly issued shares valued at 75 million euros, acquiring a 60 percent stake in IDT Biologika for around 339 billion won. Klocke Group will retain a 40 percent stake in IDT Biologika and will invest 76 billion won in SK bioscience to obtain a 1.9 percent equity share in the South Korean company.

The transaction will be financed through SK bioscience’s existing cash reserves, totaling 263 billion won. This acquisition will position SK bioscience as the majority shareholder of IDT Biologika. The two companies will co-manage IDT Biologika, leveraging their respective strengths to build a robust partnership.

Founded in 1921, IDT Biologika operates across Germany and the United States, employing 1,800 personnel. The company is recognized by over ten major pharmaceutical regulatory authorities, including those in the United States and Europe. It specializes in the development and manufacturing of vaccines and biologics, covering the entire production spectrum from clinical trials to commercial stages. Notably, IDT Biologika has an extensive history of partnerships, including a long-term collaboration with Japan’s Takeda Pharmaceutical Company on dengue vaccine development.

SK bioscience highlighted that this acquisition represents the largest-ever investment in the South Korean vaccine industry. The company anticipates that this strategic move will double its sales, enhance its production capabilities to meet the high standards of the U.S. and European markets, and expand its customer network. Furthermore, it will enable the creation of an integrated infrastructure linking the U.S., Europe, and Korea.

The acquisition is also expected to significantly enhance SK bioscience’s manufacturing and R&D infrastructure, preparing the company to better respond to future pandemics and expand its portfolio into new biotechnological areas such as oncolytic viruses and cell and gene therapies.