An Jae-yong, president of SK Bioscience (left), and Jean-Francois Toussant, global head of vaccine R&D at Sanofi, take a commemorative photo after signing the contract. /Courtesy of SK Bioscience

SK Bioscience announced on the 23rd that it has signed a contract to jointly develop a next-generation pneumococcal conjugate vaccine for infants and adults with the French pharmaceutical company Sanofi, which offers broader preventive effects than currently available products.

Vaccines are broadly categorized into polysaccharide vaccines and conjugate vaccines. Polysaccharide vaccines work by extracting the polysaccharide that envelops the pneumococcus and injecting it into the body. Conjugate vaccines combine specific proteins with the polysaccharide surrounding the pneumococcus, which is said to enhance preventive effects by prompting a stronger immune response to weak antigens.

The two companies previously entered into a contract to develop and commercialize the candidate material for the 21-valent pneumococcal conjugate vaccine 'GBP410', deciding to develop a vaccine that surpasses this as the global phase 3 clinical trial for GBP410 commences.

The goal of the two companies is to develop a more advanced, innovative next-generation pneumococcal vaccine than the 21-valent vaccine. SK Bioscience CEO Ahn Jae-yong noted that this expansion contract is based on the high success potential of the 21-valent vaccine, positive market outlook, and strong mutual trust.

Under the new contract, SK Bioscience will receive a down payment of 50 million euros (approximately 75.5 billion won) from Sanofi. Additional milestone payments will be made up to the point of project completion. The expenses for research and development will be equally shared by both companies. All costs related to commercialization will be borne by Sanofi. After commercialization, SK Bioscience will handle sales in South Korea, while Sanofi will manage global sales. The revenue from product sales will be split between the two companies according to a predetermined ratio.

SK Bioscience referred to this as a new project that will 'change the landscape of the global pneumococcal vaccine market,' stating, 'We expect to secure a leading position in a market that could reach annual revenues of tens of trillions of won.' SK Bioscience plans to tackle the global pneumococcal vaccine market with advanced technology to secure new growth and establish itself as a globally sized vaccine and biotech corporation. They also began expansion work on the vaccine manufacturing plant 'L House' in March in collaboration with Sanofi, preparing for the commercialization of GBP410.

According to global pharmaceutical statistics agency Evaluate Pharma, the pneumococcal vaccine market is expected to grow at an average annual growth rate of 4.7%, rising from 11.9 trillion won in 2024 to 14.2 trillion won by 2028. As of 2023, conjugate-style pneumococcal vaccines account for 94% of the global pneumococcal vaccine market revenue.

Thomas Triomphe, the senior vice president of Sanofi's vaccine division, said, 'We will develop advanced vaccines by merging the capabilities of SK Bioscience with the expertise of Sanofi based on our shared goal of reducing the burden of pneumococcal disease.' CEO Ahn Jae-yong stated, 'As a representative vaccine and biotech corporation in South Korea, we will do our best to secure vaccine sovereignty, contribute to global health improvement, and successfully launch a blockbuster vaccine to lead the market.'