French gene and cell treatment provider Yposkesi acquired by SK Inc. has embarked on the construction of a second plant to double the size of its production output to become the largest gene therapy contract manufacturing organization (CMO) in Europe.

SK, the investment-specialized holding entity of South Korea’s third largest conglomerate SK Group, said Monday that Yposkesi broke ground for its second factory that would cost 58 million euros ($70 million). The plant will be located in Genopole, the biggest biocluster in France where the company’s first plant is located.

The new plant will command a 5,000-square-meter area, boosting the combined size of the two production facilities to 10,000 square meters when it is completed by 2023. It will become the largest CMO of cell and gene therapy for rare diseases in Europe.

SK bought a 70 percent stake in the French biologic CMO in April to tap deeper into the global biopharmaceutical market.

Gene and cell therapy aims to treat rare diseases by cultivating and modifying cells outside the body and injecting them into the patients. The advancement of the therapy is raising hope for the precision and personalized medicines for patients with rare diseases.

Market researchers including Deloitte estimate the gene and cell therapy market would reach $62 billion in 2025, growing 15 times from 2019. About half of new drugs under clinical trials in the United States and Europe are also gene and cell therapy products. The market barrier is especially high as it requires very advanced technology and expertise.

Yposkesi owns a gene vector production platform, which is at the center of the gene and cell therapy research and development. A vector is a gene transporter that injects treatment DNA into a virus and the body.

The new factory is designed to comply with Good Manufacturing Practices (GMP), the regulations enforced by the U.S. Food and Drug Administration (FDA). The first plant is also in compliance with GMP guidelines. The second factory will be equipped with large-scale bioreactors and refining system, ingredients manufacturing facility and quality control center to enable mass production.

By Lee Yoon-jae and Choi Mira

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