SK pharmteco, a global contract development and manufacturing organization (CDMO), announced a $6.1 million investment to expand its Rancho Cordova, California facility. The funding will establish a new laboratory and CGMP kilo-scale facility dedicated to Solid-Phase Peptide Synthesis (SPPS) and purification.
This initiative strengthens SK pharmteco’s domestic manufacturing network and reinforces its commitment to advancing peptide production and pharmaceutical innovation in the United States.
The expansion leverages SK pharmteco’s proprietary chromatography expertise, a critical technology for resolving purification bottlenecks in peptide manufacturing. By integrating SPPS with advanced purification at both the lab and kilo scales, the company aims to deliver faster, more efficient peptide process development for clinical and commercial applications. The investment also enhances domestic Active Pharmaceutical Ingredient (API) production capacity—addressing growing industry demands for reliable, U.S.-based manufacturing amid ongoing supply chain challenges.
This project complements SK pharmteco’s broader global strategy, following its previously announced $260 million investment in a new small molecule and peptide production facility in South Korea. Together, these expansions reflect a coordinated effort to build resilient, interconnected production capabilities across regions.
The company expects the new lab to begin operations in January 2026, with the kilo-scale facility coming online in the second half of the same year. Once operational, the facility will significantly increase SK pharmteco’s capacity to deliver high-purity, large-volume peptide batches, helping biopharma clients move seamlessly from discovery through commercial production.
The investment underscores SK pharmteco’s role as a key player in the domestic biopharma ecosystem, supporting the rapid development of essential medicines and strengthening the U.S. life sciences supply chain. By expanding local peptide manufacturing capacity, the company aims to reduce reliance on overseas production and accelerate the delivery of critical therapeutics to patients.
KEY QUOTES:
“The investment in our California facility represents a key milestone in our strategic growth and demonstrates an unwavering dedication to the domestic biopharma sector. Peptides are a vital and rapidly advancing therapeutic category. This project highlights our ongoing commitment to furthering their development and manufacturing.”
“We are expanding our capacity to meet the increasing demand for high-quality, secure U.S. manufacturing, with this investment and others to come. While many companies are now committing to expanding capacity in the U.S., CDMOs like SK pharmteco remain a vital part of the supply chain, both now and in the future. Our stronger network accelerates the journey from discovery to commercial production, boosting the resilience of domestic manufacturing to deliver essential medicines more quickly to patients.”
Joerg Ahlgrimm, CEO, SK pharmteco
