[Edaily Reporter KIM SAE-MI ] The National Growth Fund is providing a 20 billion won low-interest loan to KYONGBO PHARMACEUTICAL CO., LTD.(214390), which is entering the antibody-drug conjugate (ADC) contract development and manufacturing (CDMO) business. The plan is to support the expansion of the domestic ADC production infrastructure by providing funding for the ADC-dedicated production facility that KYONGBO PHARMACEUTICAL CO., LTD. is currently constructing with a total investment of 96 billion won
According to the biotech industry on the 31st, the National Growth Fund’s Fund Management Committee approved a 20 billion won low-interest loan for KYONGBO PHARMACEUTICAL CO., LTD., located in South Chungcheong Province, on the 27th. KYONGBO PHARMACEUTICAL CO., LTD. had applied for these funds from the Advanced Strategic Industries Fund to enter the ADC business.
With this support, KYONGBO PHARMACEUTICAL CO., LTD. has become the National Growth Fund’s fourth investee in the biotech sector. The National Growth Fund previously provided low-interest loans of 85 billion won to BTGen in April and 300 billion won to SK BIOSCIENCE(302440)in May. In June, it made a direct investment of 250 billion won in LigaChem Biosciences(141080). KYONGBO PHARMACEUTICAL CO., LTD. is the third company to receive a low-interest loan and the second in the ADC sector, following LigaChem Biosciences.
#KYONGBO PHARMACEUTICAL CO., LTD., an affiliate of the CHONGKUNDANG Group, is cultivating its ADC business as a new growth engine based on its existing production capabilities for active pharmaceutical ingredients (APIs) and finished pharmaceutical products. The company is securing customized antibodies through collaborations with external partners, while also possessing more than 10 proprietary technologies related to drug and linker manufacturing and ADC conjugation.
In particular, the company is investing a total of 96 billion won to build Good Manufacturing Practice (GMP) production facilities for its ADC CDMO business. The initial investment was 85.5 billion won, but it was increased to 96 billion won due to facility expansions and design changes aimed at improving productivity. The investment period runs from August 2024 through the end of this year.
KYONGBO PHARMACEUTICAL CO., LTD. plans to complete construction of the GMP production plant by the end of this year and, following plant validation and preparations for GMP certification through the third quarter of 2027, begin full-scale production of ADC samples for clinical trials. The company intends to initially focus on producing ADCs for preclinical and clinical use before expanding its operations to include commercial production.
The company’s strategy is to secure a competitive edge by providing an ADC development platform based on its in-house drug and linker development. It plans to expand its business scope across the entire ADC value chain by offering not only the manufacture of clinical ADC samples but also services such as component analysis.
Meanwhile, the National Growth Fund approved a total of 17.9 trillion won in support from January through August of this year. By sector, this breaks down into 2.83 trillion won in direct investment, 1.59 trillion won in indirect investment, 6.87 trillion won in infrastructure investment and financing, and 6.59 trillion won in low-interest loans. Regional support accounted for 42.5% of the total approved amount.
