SK Bioscience is ramping up its expansion into the Latin American market with its proprietary vaccine technology. The company aims to increase its global influence through a glocalization strategy, which goes beyond simple vaccine exports to include technology transfers and the establishment of local production facilities.
SK Bioscience announced on Tuesday that it has entered into an agreement with VECOL, Colombia’s state-owned pharmaceutical company, for vaccine technology transfer and local production collaboration.
This agreement is part of a national vaccine localization initiative spearheaded by Colombia’s Ministry of Health and Social Protection, in partnership with the National Institute of Health (INS) and VECOL.
The large-scale government project, with an investment of approximately 260 million USD over the next decade, aims to build vaccine self-sufficiency and enhance national public health capabilities.
VECOL, designated by the Colombian government as the lead implementing agency, will oversee the project’s execution. SK Bioscience will serve as a partner for vaccine technology transfer and local production cooperation.
The Colombian government previously conducted a comprehensive four-year evaluation of several global companies with the World Health Organization (WHO) approved vaccine production experience, assessing their technological prowess, regulatory standards, collaborative capabilities, and long-term strategic fit. SK Bioscience stood out for its global business experience, rigorous quality and regulatory management systems, WHO pre-qualification vaccine production track record, and commitment to long-term national capacity-building projects.
Moving forward, SK Bioscience will establish production facilities in Colombia and transfer the necessary technology and expertise for product introduction, regulatory approval, and production operations. VECOL will be responsible for setting up and managing production facilities, obtaining government approvals, coordinating with the National Immunization Program (NIP), and liaising with government agencies.
The varicella vaccine SKYVaricella has been chosen as the initial product for technology transfer. SK Bioscience plans to develop a local production and technology transfer system based on its in-house developed SKYVaricella vaccine, with the potential to expand cooperation to additional vaccine product lines in the future.
In addition, SK Bioscience will have the right of first negotiation if the facility is used not only for its own vaccines but also for various other products that the Colombian government plans to procure in the future.
In addition, SK Bioscience received a request from Pan American Health Organization (PAHO) to supply 950,000 doses of SKYVaricella to Colombia within the year, and has secured a final purchase order for 600,000 doses of that amount.
Jae-yong Ahn, Chief Executive Officer (CEO) of SK Bioscience, stated that they’re honored to participate in the national vaccine production capacity enhancement project led by the Colombian government and VECOL. It will strive to contribute to future infectious disease preparedness and the establishment of a sustainable vaccine supply foundation, leveraging the accumulated vaccine development and production capabilities, as well as the global collaboration experience.
In other news, SK Bioscience recently decided to implement a Restricted Stock Unit (RSU) system for all employees. To support this initiative, the company will launch a share buyback program worth approximately 11.36 million USD by July.
SK Bioscience plans to repurchase about 390,000 shares, representing roughly 0.5% of its total issued shares, in installments from this month until July to implement a stock compensation system that promotes a virtuous cycle of growth and rewards.
The share buyback will be conducted through direct market purchases, and all acquired shares will be allocated as compensation resources for employees.