SK Bioscience Co. reported a deepening quarterly loss as revenue plunged amid dwindling Covid-19 vaccine sales, pushing the South Korean drugmaker to seek growth through acquisitions and new products.
The vaccine maker posted an operating loss of 39.6 billion won ($29.3 million) in the third quarter, compared with a profit of 60.9 billion won a year earlier, according to a statement Thursday. Revenue dropped 73% to 61.6 billion won, mainly due to the end of its Covid vaccine manufacturing contract with Novavax Inc.
The company is pivoting away from pandemic-related products by expanding its vaccine portfolio and moving into contract manufacturing for cell and gene therapy through its recent acquisition of Germany’s IDT Biologika GmbH. SK Bioscience aims to turn around IDT’s operations by 2025, targeting revenue of 292 million euros.
To offset declining Covid revenue, SK Bioscience is ramping up sales of its flu vaccine SKYCellflu, which rose 4% year-on-year to 35.8 billion won in the third quarter. The company recently secured approval to sell the vaccine in Indonesia.
The drugmaker is also advancing development of a 21-valent pneumococcal conjugate vaccine, with phase 3 clinical trials approved in Australia. The global market for such vaccines is expected to grow to $12 billion by 2030 from $8 billion in 2023.
