Prestige Biopharma Group Signs Strategic CDMO Partnership with Dr. Reddy’s Laboratories

Prestige Biopharma Group Signs Strategic CDMO Partnership with Dr. Reddy’s Laboratories

Prestige Biopharma Group announced on the 22nd that its CDMO subsidiary, Prestige Biologics (KRX: 334970, CEO: Deok-Hoon Hyun), has signed a strategic partnership Memorandum of Understanding (MOU) with Aurigene Pharmaceutical Services Limited, a wholly owned subsidiary of Dr. Reddy’s Laboratories, one of India’s leading pharmaceutical companies.

Under the agreement, Prestige Biologics will serve as a manufacturing hub in Korea for selected pipeline products from Dr. Reddy’s Laboratories, covering manufacturing, drug product packaging, and distribution. Following further negotiations on detailed terms, the companies plan to enter into large-scale manufacturing supply agreements.

The partnership is expected to span 15 years, with Dr. Reddy’s anticipated to become the first global pharmaceutical client for Prestige Biologics’ contract manufacturing services.

Dr. Reddy’s Laboratories, listed on the New York Stock Exchange, recorded annual revenues of approximately KRW 4 trillion last year across markets in the United States, Europe, and Asia. After visiting Korea earlier this year, Dr. Reddy’s CEO Erez Israeli held multiple meetings with Prestige Biopharma Chairwoman Soyeon Park and Prestige Biologics CEO Deok-Hoon Hyun across Singapore, India, Korea, and the United States. Following five executive-level meetings and an operational review including a visit to the Osong manufacturing facility, Prestige Biologics was ultimately selected as a large-scale contract manufacturing partner.

To prepare for commercial manufacturing, Prestige Biologics plans to begin technology transfer next month for Process Performance Qualification (PPQ) at its Osong Campus 2 facility in Chungbuk, enabling rapid production once product-specific supply agreements are finalized.

Through this partnership, Prestige Biologics expects to secure stable global revenue streams in the rapidly growing CDMO market for biopharmaceuticals. Dr. Reddy’s currently markets 163 pharmaceutical products worldwide and maintains four major biosimilar pipelines generating substantial annual revenues. Following the MOU, the companies plan to conclude manufacturing contracts for multiple pipeline products to be produced in Korea.

The large-scale manufacturing agreements will cover the full production value chain, including active pharmaceutical ingredient (API) production, drug product manufacturing, packaging, and labeling. Revenues for Prestige Biologics will be generated sequentially based on supply agreements concluded with Dr. Reddy’s

With a manufacturing capacity of 154,000 liters, Prestige Biologics has rapidly established large-scale production infrastructure to prepare for the expanding global biopharmaceutical market. The company expects that securing global manufacturing experience through this partnership could enable a significant leap in revenue growth.

Beyond contract manufacturing, the partnership also includes broader collaboration in CDMO services. Founded in 1984, Dr. Reddy’s Laboratories has extensive experience in pharmaceutical development, including cell culture and purification processes, analytical method development, formulation development, clinical development, manufacturing, commercialization, marketing, and sales. Through its subsidiary Aurigene Pharmaceutical Services, the company also provides CRDMO (Contract Research, Development, and Manufacturing Organization) services covering drug discovery, development, and manufacturing.

Prestige Biologics plans to combine its customized manufacturing service model, CDEMO, with Aurigene’s CRDMO capabilities to jointly develop new customers and expand contract manufacturing opportunities.

Deok-Hoon Hyun, CEO of Prestige Biologics, said, “Dr. Reddy’s Laboratories, a global pharmaceutical company with strong expertise in antibody therapeutics and significant capital resources, selected us as a long-term business partner for over 15 years based on the strength of the K-Bio brand, our manufacturing infrastructure, and our capabilities in quality and speed. Through this partnership, we aim to enhance the global presence of K-Bio in the CDMO market and expect to deliver meaningful contract wins that will further increase the company’s value.

Source: dealsite https://dealsite.co.kr/articles/110453