SK Bioscience, the vaccine developer and manufacture under SK Chemicals, is speeding up its IPO process to capitalize on the hype over its sibling’s debut and mention from Bill Gates on its potential in COVID-19 pipeline.

According to investment banking sources on Tuesday, SK Bioscience is expected to complete documental submission to the Korea Exchange by the end of this year. IPO lead managers, NH Investment & Securities and Korea Investment & Securities are set to start their work on IPO valuation this week.

It targets to have financial ammunition ready for production of COVID-19.

SK Bioscience has a compelling track record in developing and selling lucrative vaccines. Its robust pipeline features the world’s first quadrivalent influenza vaccine (SKYCellflu Quadrivalent) and Korea’s first locally developed shingles vaccine (Skyzoster) among others.

It has also attracted investors with significant progress in efforts to fight the COVID-19 pandemic. In May, it received a $3.6 million research grant from Bill & Melinda Gates Foundation. More recently, it signed a CMO contract with AstraZeneca to produce an investigational COVID-19 vaccine for the British pharmaceutical company.

Analysts are mixed about corporate value of SK Bioscience. Some think the company’s market cap would reach 3 to 4 trillion won based on its CMO capacity to produce a coronavirus vaccine which is being tested in a phase 3 study. Others believe it is overrated because the company’s own COVID-19 vaccine remains preclinical and far behind other vaccine developers such as Genexine in Korea.

SK Bioscience’s vaccine production facility dubbed the L House is able to produce 150 million doses per year even at full capacity, which has a discrepancy from 200 billion doses projected by Bill Gates in his letter sent to President Moon Jae-in last month. In the letter, Gates said SK Bioscience backed by his foundation may be capable of producing 200 million coronavirus vaccine kits by next June.

By Kang Woo-seok and Minu Kim

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]