SK Pharmteco invests $260M to expand small molecule, peptide production

SK Pharmteco announced that it expanded its small molecule and peptide production capabilities with a $260 million investment.

The Rancho Cordova, California-based CDMO plans to construct a new state-of-the-art facility in Sejong, South Korea. It expects to begin operations at the new plant — the company’s fifth in South Korea — in late 2026. The company said in a news release that it aims to have the facility become “a cornerstone” of its global manufacturing network.

SK Pharmteco’s investment also includes state-of-the-art peptide R&D facilities, cGMP kilo labs and a cGMP pilot plant for peptide manufacturing. The resources can support early-stage clinical and commercial production with great flexibility.

Additionally, the company’s investment extends to building a shell for a sixth manufacturing plant, allowing for quick expansion in the future.

SK Pharmteco plans to hire more than 300 new employees at the Sejong site to support the expansion. The company says the new facility addresses supply chain challenges like limited manufacturing capacity and complex regulatory requirements.

“This expansion is a testament to our unwavering dedication to serving the evolving needs of the life sciences industry,” said Joerg Ahlgrimm, CEO of SK pharmteco. “By investing in this new facility, we’re increasing our capacity in Asia in line with our global expansion strategy and solidifying our position as a trusted partner for companies developing groundbreaking treatments, demonstrating our adaptability and reliability in a rapidly changing industry.”