[Edaily Reporter KIM SAE-MI ] It has been seven months since CGB (Cell Gene Bioplatform)—Cha Bio Group’s Pangyo-based cell and gene therapy (CGT) production hub, into which the company invested 116 billion won—received its operating approval, but no specific commercial operation schedule has been announced yet. The first facility to open is expected to be the Open Innovation Center, rather than a CDMO production line.

The company maintains that it is “not yet at the stage where it can provide specific details” regarding order intake, operating rates, the break-even point (BEP), or the scale of additional investments. It is expected to take a considerable amount of time for this large-scale facility investment to translate into actual revenue.

Seven months have passed since the operating permit was granted, but the start date for GMP operations remains undetermined

The CGB is a CGT CDMO production facility and biobank project established in Pangyo Second Techno Valley through investments of 50%, 40%, and 10% by Chabiotech Co.,Ltd., CMG Pharmaceutical Co., Ltd., and Cha Care. The total investment amounts to 116 billion won. Based on their equity stakes, Chabiotech Co.,Ltd.(085660)contributed 58 billion won, CMG Pharmaceutical Co., Ltd.(058820)contributed 46.4 billion won, and Cha Care contributed 11.6 billion won.

The CGB complex is slated to house a CGT CDMO, cGMP manufacturing facilities, a biobank, research facilities, and open innovation spaces. Cha Bio Group’s vision is to integrate everything from R&D to clinical trials, production, and business development under one roof and, by linking with overseas hubs—including Matica Biotechnology in the U.S.—to utilize the facility as a core domestic production hub within a global CGT CDMO network.

Construction has been delayed several times compared to the original schedule. Although CGB received its occupancy permit on March 4, follow-up work—such as interior construction and the installation of production equipment—remained incomplete at that time. An occupancy permit is merely an administrative procedure indicating that the facility is ready for use; to actually produce biopharmaceuticals, additional steps are required, including equipment installation, qualification assessments, validation, and preparation for GMP operations.

The problem is that even now, seven months after the occupancy permit was granted, there are no indicators to gauge the production facility’s operational schedule. Although Edaily inquired about CGB’s current construction progress, the timeline for GMP production and commercial operation, secured clients and confirmed order amounts, production capacity and expected utilization rates, and BEP targets, the company did not provide specific answers.

An official from Chabiotech Co.,Ltd. stated, “The K-Bio CIC Open Innovation Center currently being prepared by CGB is expected to be the first to begin operations,” adding, “Other facilities are scheduled to follow sequentially.” The official continued, “As for the rest, we are not yet at a stage where we can provide specific details.”

Orders, Utilization Rates, and

BEP All Undisclosed… Is the 116 Billion Won Investment Enough

? Ultimately, it is difficult to assess the economic viability of CGB, which has received an investment of 116 billion won. To date, details such as the number of actual CDMO clients secured, the volume of firm contracts and the order backlog, and whether there are anchor clients to support initial operating rates have not been disclosed. It also remains unclear whether there are plans to share the client volume secured by U.S.-based Matica with CGB or to transfer it to South Korea.

This issue is also linked to the previous investment in Matica in the U.S. As of May 2025, Cha Bio Group had invested a cumulative total of $112 million (approximately 150 billion won) in Matica. Although Matica has expanded its order intake since launching its Texas plant in 2022, its revenue for the first half of this year was approximately 1.6 billion won, with a net loss of about 17.4 billion won. The company expects revenue growth to accelerate starting with its first GMP production this year, but it has not disclosed the timing for reaching the break-even point (BEP) or its current operating rate.

A direct comparison of CGB’s and Matica’s business structures is not possible. This is because while Matica focuses on viral vector CDMO operations, CGB is a comprehensive biocluster that includes not only production facilities but also a biobank, research facilities, and an open innovation center. Another key difference is CGB’s ability to leverage Cha Hospital and the group’s R&D infrastructure.

Nevertheless, the Matica case demonstrates that the completion of a large-scale production facility does not immediately translate into meaningful revenue and profits. This is because facility utilization rates and revenue can only begin to rise significantly after securing initial customers, completing process development, and progressing to the GMP production, late-stage clinical trials, and commercial production phases. In the case of CGB, it is currently difficult for outsiders to even assess what stage the company has reached.

The possibility of additional capital injections is another point that needs to be clarified. Beyond the disclosed 116 billion won, the company has not specified whether additional capital expenditures (CAPEX) will be required for the construction and validation of production facilities, equipment procurement, and initial operations. If additional investment is needed, it remains unclear whether Chabiotech Co.,Ltd., CMG Pharmaceutical Co., Ltd., or Cha Care will bear the costs in proportion to their existing equity stakes, or whether they will resort to separate borrowing or external funding.

Chabiotech Co.,Ltd. also faces other funding needs, such as the exit of financial investors (FIs) from Cha Healthcare. Under these circumstances, if CGB secures orders and brings its production facilities online as planned, it could establish itself as a new source of cash flow. Conversely, if commercial operations are delayed and only additional investments increase, it could become yet another large-scale project that ties up funds for an extended period.

To assess the performance of CGB, which required an investment of 116 billion won, meaningful revenue and utilization rates must become apparent. At present, while the building has received occupancy approval, most of the indicators needed to evaluate the project’s viability—such as customers, orders, utilization rates, additional investment amounts, and the break-even point (BEP)—remain shrouded in mystery.

An industry insider expressed concern, stating, “Even though U.S.-based Matica has not secured sufficient orders or operating rates, it has built another large-scale CGT CDMO facility in Korea.” The insider added, “Given that the domestic demand base for CGT CDMO is not robust, CGB could face a heavy burden of fixed costs if it fails to secure enough customers.”