SK Inc., the holding and investment arm of South Korea’s SK Group, is in advanced negotiations to sell a significant asset of its contract drug manufacturing unit, SK Pharmteco Co., to Danish pharmaceutical giant Novo Nordisk A/S. The asset in question is the contract development and manufacturing organization (CDMO) factory located in Petersburg, Virginia.
According to sources familiar with the matter, the deal is estimated to be worth 300 billion won ($216 million). Both parties aim to finalize the transaction by the end of August.
SK Pharmteco, headquartered in Sacramento, California, specializes in providing comprehensive drug development and manufacturing services. The sale of the Virginia plant represents a strategic move for SK Inc. as it continues to streamline its operations and focus on core business areas.
For Novo Nordisk, the acquisition of the Petersburg facility will significantly enhance its manufacturing capabilities in the United States. This aligns with the company’s strategy to expand its production capacity to meet growing global demand for its pharmaceutical products.
The transaction underscores the ongoing consolidation within the pharmaceutical industry, driven by the need for advanced manufacturing technologies and capacities to support drug development and production.
As the deal progresses towards completion, both SK Inc. and Novo Nordisk are poised to benefit from the enhanced strategic alignment and operational efficiencies that the sale is expected to bring.
