South Korea's DuChemBio to Build Country's First Radiopharmaceutical CDMO Plant

South Korean radiopharmaceutical therapy company DuChemBio will build the country's first contract development and manufacturing organization (CDMO) plant dedicated to radiopharmaceuticals, in response to growing demand for radiopharmaceuticals used in the diagnosis and treatment of cancer and neurological diseases.

DuChemBio is a subsidiary of healthcare distributor Geo-Young Group. The company recently signed an investment agreement with North Jeolla Province and the city of Jeongeup to invest KRW 34.3 billion (approximately USD 25.5 million) in building a new plant in Jeongeup. The company stated that this is the largest investment since Geo-Young acquired DuChemBio.

According to the plan, the new facility will integrate radioisotope production, pharmaceutical manufacturing, and export functions. Of the project funding, approximately KRW 19.3 billion will come from the company's own funds, with approximately KRW 15 billion financed through loans. The company stated that no equity issuance will be needed to raise capital.

The project will be built in two phases. Phase 1 is scheduled to begin construction in June 2027, with an investment of approximately KRW 13.6 billion, to build a manufacturing R&D center and the first production line, targeting commercial production in the second half of 2029. The production line is designed with an annual capacity of approximately 1,000 batches, making it the largest-capacity production line DuChemBio has ever built.

Phase 2 is expected to involve an investment of approximately KRW 20.7 billion and is scheduled for completion between 2031 and 2032, adding an isotope production center and active ingredient manufacturing facilities. Before the plant officially begins operations, it must obtain Good Manufacturing Practice (GMP) certification from the Ministry of Food and Drug Safety (MFDS) and a production license from the Nuclear Safety and Security Commission (NSSC).

DuChemBio stated that the Jeongeup site is located within a government-designated investment zone, qualifying for a five-year exemption from income tax and corporate tax, exemption from acquisition tax, and property tax incentives. The company also expects to receive approximately KRW 3.4 billion in local subsidies, which will reduce its borrowing needs.

Currently, DuChemBio manufactures two Alzheimer's disease positron emission tomography (PET) imaging agents under contract: 18F-MK-6240 for U.S.-based Lantheus and 18F-PI-2620 for Germany's Life Molecular Imaging.

DuChemBio CEO Kim Sang-woo stated that the company aims to build one-stop service capabilities from drug development to regulatory approval, and to establish Jeongeup as a radiopharmaceutical therapy (RPT) hub targeting mainland China, Japan, and Taiwan. The company expects the hub to generate annual revenue exceeding KRW 20 billion after 2032.