CJ CheilJedang will enter the contract manufacturing organization (CDMO) market for cell and gene therapies by acquiring a biotech company based in the Netherlands.
CJ CheilJedang held a board meeting on Monday and passed a plan to acquire 76 percent of the shares of Batavia Biosciences, a bio CDMO headquartered in the Netherlands, for 267.7 billion won. Batavia Biosciences was founded in 2010 by the management in charge of the research and development and manufacturing of global pharmaceutical company Janssen’s vaccines and is known for distinctive capabilities in developing the manufacturing process of vaccines, etc. The current largest shareholder of the company will become the second-largest shareholder and stay in the management to run the business.
A bio CDMO is a company that serves other pharmaceutical companies, which develop cell and gene therapies and oncolytic virus therapies, on a contract basis to produce drug substances, samples for clinical trials, etc. The market is expected to grow 25 percent per year to reach 16.5 trillion to 18.9 trillion won in 2030.
CJ CheilJedang will expand its portfolio of red bio businesses, which refer to bio businesses in medicines and pharmaceuticals, with the acquisition of Batavia Biosciences. The South Korean company already acquired ChunLab, a life science information company, in July this year to acquire capabilities to develop next-generation new drugs.
“We will prepare for a launch to become a global biologics manufacturing hub with investment in facility expansion, etc.,” said a member of CJ CheilJedang.