Jaeyoung Yang, CEO of Prestige Biologics.
Prestige Biologics is expected to list on the KOSDAQ market on the 11th of next month. With the completion of the second plant next year, it secures a total production capacity of 104,000 liters and is expected to generate annual sales of 3215 billion won by 2025.
The expected sales this year is 34.6 billion won. The goal is to achieve 10 times the sales within 5 years.
Prestige Biologics held an IPO conference at the Conred Seoul Hotel in Yeouido, Seoul on the 19th, and revealed specific plans for this.
The company was founded in 2015. It is an antibody and biopharmaceutical manufacturer. It is engaged in consignment production (CMO), consignment development (CDO), and consignment development production (CDMO) as its main business.
It is an affiliate of PB Pharma, which was listed on the stock market on the 5th. The two companies are in the process of joint development of a biosimilar (generic biopharmaceutical drug). It is developing Herceptin biosimilar’HD201′ and Avastin biosimilar’HD204′. Prestige Biologics owns manufacturing priority and some ownership of both biosimilars.
HD201 is subject to marketing approval from the original European Medicines Agency (EMA). The company plans to start full-scale commercial production of HD201 from the second half of this year. HD204 is undergoing global phase 3 clinical trials.
CEO Yang said, “Unlike general consignment projects, the joint development generates a certain percentage of profits in proportion to manufacturing priority and sales.” said.
Prestige Biologics is introducing a single-use vessel culture method rather than a stainless steel vessel culture method. Unlike the stainless steel method that repeats washing and sterilization to prevent cross-contamination, it uses a plastic-based disposable container.
The disposable culture method has the advantage that the risk of cross-infection is very low compared to the stainless steel method. The company explained that even if it is infected, only the relevant container needs to be replaced, reducing the period of restarting to within a few days. Consumables, such as disposable containers, are relatively expensive, but they are becoming more common recently and procurement costs are also decreasing.
In June 2018, the company completed the first factory in Korea with a size of 6000 liters equipped with disposable production facilities for all processes. In April 2019, it obtained the approval of conformity to the Pharmaceutical Manufacturing and Quality Control Standards (GMP) from the Ministry of Food and Drug Safety.
Prestige Biologics plans to build a stable and efficient production system by diversifying its manufacturing facilities. To this end, it is building a second factory with a production scale of 98,000 liters. The second plant is applied with ALITA, a hybrid process technology that combines a disposable method and a stainless steel method.
CEO Yang said, “The smart facility using Alita can reduce the cost by about 70% compared to the comparative process.”
The second plant is built in two stages. The first phase is scheduled to be completed within the year with a scale of 28,000 liters. The second stage will be completed next year with a scale of 70,000 liters.
When the second factory is completed, the total production scale will increase to 104,000 liters. In addition to stable commercial production of HD201 and HD204, it is expected that additional CMO contracts with domestic and overseas large pharmaceutical companies will be possible.
CEO Yang Jae-young said, “Based on the effective production of the first and second plants, the utilization rate will reach 50% next year.”
New businesses are also being prepared to secure competitiveness and differentiate. It is planning to conduct a consignment engineering service business (CEO) in a batch order (turnkey) method that provides a pharmaceutical consignment packaging business (CPO) and a customized manufacturing environment for customers.
The funds raised through the listing will be used for construction costs and operating funds for the second factory. The brand name is’Prestige Biologics’ as it is listed.
The total number of publicly offered stocks of Prestige Biologics is 7.35 million. The bid price is 8700~12,400 won. On the 23rd to 24th, demand forecasts are conducted to determine the offering price. The general subscription date is 2-3 days of next month. Representative organizer is Mirae Asset Daewoo(9,860 0.00%)All.
Reporter Park In-hyuk [email protected]