Korean Companies Emerge as Strong Candidates

Moderna is expected to rely on contract manufacturing organizations in Asia for production of its vaccines.

As the introduction of Moderna's COVID-19 vaccine to Korea has become more visible, attention is being paid to which companies will produce the vaccine.

The Korean government says that there has not been any concrete discussion about the issue yet. However, Modena CEO Stephane Bancel mentioned the possibility of outsourcing production to Korean companies. Several Korean companies are surfacing as candidates.

GC Pharma and Hanmi Pharmaceutical are cited as possible contractors. GC Pharma is one of the leading Korean vaccine producers. In October, it signed a partnership agreement with the Coalition for Epidemic Preparedness Innovations (CEPI) to participate in production of COVID-19 vaccines developed by overseas pharmaceutical companies under CEPI sponsorship. Moderna is included among such companies, but GC Pharma refrained from disclosing the specific names of the companies. The period of its contract with CEPI is from March 2021 to May 2022. CEPI aims to produce 500 million doses of COVID-19 vaccines through GC Pharma during this period. "Our total production capacity is about one billion doses a year," a GC Pharma official said.

Hanmi Pharmaceutical is considered a candidate in that it can utilize a biotech plant that can grow 20,000 liters of microorganisms. The company can produce up to one billion doses a year. "If Mordena transfers its technology to us, we can produce its vaccines," a Hanmi Pharmaceutical official said.

Moderna CEO Bancel said he was well aware of Korean companies’ strong production capabilities. He added that Moderna would be able to secure large-scale production capacity if it outsources production of its vaccines to Korean companies.

The mRNA vaccine developed by Moderna produces antibodies by informing cells in the body of how to produce proteins that induce immune responses. Traditional vaccines require synthesization of virus genes into proteins using animal cells such as fertile eggs. The mRNA method, however, does not need such a process.

The problem is that Korean companies have not accumulated experience in producing mRNA vaccines, which are rare. “It seems clear that Moderna needs to rely on contract manufacturing organizations (CMOs) in Asia,” an industry insider said. “For contract manufacturing, Morderna will have to transfer its technology to its partners. But it may have security concerns."

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