SK Bioscience: Two-Week Update — Varicella Vaccine Production Suspended, IDT Collaboration Expands, Q3 Results Due November 5

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This article summarizes major developments at SK Bioscience (302440) from October 14 to 28, 2026. It is based on publicly available news reports, company press releases, and regulatory filings, with the company’s plans and outlook distinguished from established facts.

1. Temporary Production Suspension of Varicella Vaccine SKYVaricella (Reported October 23)

Facts – On October 23, the company reported to the Ministry of Food and Drug Safety (MFDS) a temporary production suspension and supply shortage of its SKYVaricella vaccine, used in the National Immunization Program (NIP) for children. – The company stated that the suspension was due to the regulatory approval process for manufacturing changes intended to optimize production. – According to its semiannual report, the product’s domestic market share was 52% in 2024 and 34% in 2025. – The NIP varicella vaccine list also includes GC Biopharma’s Varicella vaccine and Boran Pharma’s Vari-L vaccine. All three products have a vaccine cost of KRW 15,920 per dose.

Company Explanation and Outlook – The company expects supply to return to normal on March 18, 2027. It explained that normalization could occur earlier depending on the progress of regulatory approval. – The company stated that available distribution inventory and sufficient supplies of alternative vaccines from other manufacturers should mean that the actual impact on vaccinations will be minimal. – It explained that the report was submitted in advance because the approval process for manufacturing changes could take time.

2. Expanding Collaboration Following the Acquisition of Germany's IDT (Seoul Economic Daily, October 25)

Facts (Based on Regulatory Filings and Seoul Economic Daily Reporting) – Consolidated revenue in 2025 reached KRW 651.4 billion, up 143.5% year over year. Operating losses narrowed from KRW 138.4 billion to KRW 123.5 billion. – IDT recorded 2025 revenue of KRW 465.7 billion and operating profit of KRW 9.9 billion. – In the first half of 2026, IDT generated revenue of KRW 257.8 billion and operating profit of KRW 12.7 billion, exceeding its full-year 2025 operating profit in just six months. – The company acquired approximately 60% of IDT in October 2024.

Ongoing Joint Projects – Next-generation patch-based influenza vaccine – This project is led by the European Health and Digital Executive Agency (HaDEA) in collaboration with Australia’s Vaxxas. – The first phase, including Phase 1 clinical trials, has a maximum value of EUR 12.9 million. – Including three related framework contracts, the total project value could expand to as much as EUR 225 million. – Zaire Ebola vaccine – This project is being conducted with MSD and the Hilleman Laboratories. CEPI is providing up to USD 30 million in funding to MSD. – SK Bioscience is responsible for manufacturing the vaccine drug substance, while IDT handles the finished drug product.

Company Plans – Building on a production structure linking its domestic facilities with IDT, the company plans to expand global contract development and manufacturing organization (CDMO) orders and increase overseas production and supply of its proprietary vaccines.

3. First-Half Financial Performance Analysis (DataNews, October 14)

Facts (Based on the Semiannual Report) – First-half consolidated revenue was KRW 324.3 billion, up 2.5% year over year. Operating losses widened to KRW 60.3 billion from KRW 52.5 billion a year earlier. – The second-quarter consolidated operating loss narrowed to KRW 15.7 billion from KRW 37.4 billion in the same period last year. A key factor was IDT’s return to profitability, with second-quarter operating profit of KRW 18.6 billion. IDT had recorded an operating loss of KRW 2.7 billion in the year-earlier quarter. – First-half revenue declined across all major proprietary vaccines: – Influenza: KRW 7.7 billion → KRW 5.6 billion – Shingles: KRW 23.7 billion → KRW 20.7 billion – Varicella: KRW 8.5 billion → KRW 7.5 billion – First-half research and development expenses rose 80% to KRW 122.4 billion, equivalent to 37.7% of revenue.

Company Plans – The 21-valent pneumococcal vaccine being jointly developed with Sanofi is currently undergoing global Phase 3 clinical trials, with key results scheduled for announcement in 2027.

4. AI Application in Vaccine Manufacturing Presented at AI Bio Summit (Press Release, October 23)

Facts – On October 23, Lee Yong, head of the AX Planning Team, delivered a presentation at the “ABDD Summit 2026 in Incheon.” – The presentation introduced a case study involving the application of an AI-powered “Yield Guide Agent” to the influenza vaccine manufacturing process at the Andong L HOUSE facility. – The AI system performs analysis and provides recommendations, while final decisions remain subject to review and approval by responsible personnel.

Company Plans – The company is developing an enterprise-wide AI framework called “AI Brain.” – It plans to expand the scope of AI-supported operations during 2027–2028 and begin actively pursuing the achievement of objectives in individual business areas from 2029.

5. Upcoming Event: Third-Quarter Earnings Announcement on November 5

– A regulatory notice regarding an upcoming investor relations (IR) event was disclosed at 16:11 on October 26. – The company plans to hold a conference call for securities analysts at 16:00 on Thursday, November 5, to discuss its third-quarter financial results and business performance. – Related materials are scheduled to be posted in the IR section of the company’s website at 16:00 on the same day. The schedule is subject to change depending on company circumstances.

Summary

The most notable development over the past two weeks was the temporary production suspension of the SKYVaricella vaccine. The company expects supply to normalize in March 2027. Meanwhile, it has continued efforts to expand international collaboration and manufacturing capabilities, particularly through Germany-based IDT.

The next scheduled milestone is the third-quarter earnings announcement on November 5.

This article is provided for informational purposes only and does not constitute investment advice.

Sources – Medical Times: SK Varicella Vaccine Production Temporarily Suspended for Process Optimization, Expected to Normalize Next March (2026-10-26) – Seoul Economic Daily: IDT Deal Lifts SK Bioscience Flu, Ebola Vaccine Push (2026-10-25) – DataNews: SK Bioscience — IDT Growth, Weak Vaccine Sales, and Continued Investment in the Future (2026-10-14) – SK Bioscience Press Release: Participation in the AI Bio New Drug Hub Global Summit (2026-10-23) – Seoul Economic Daily Market Signal: Disclosure of Investor Relations (IR) Event (2026-10-26) – AWAKEPLUS: IR Event Disclosure, Including Link to Original DART Filing (2026-10-26)