In a strategic move to strengthen domestic pharmaceutical production, SK pharmteco, a global Contract Development and Manufacturing Organization (CDMO), has announced a $6.1 million investment in its Rancho Cordova facility in California. The expansion will establish a new CGMP-Kilo-scale facility and an advanced laboratory for Solid-Phase Peptide Synthesis (SPPS) and purification — a step expected to significantly expand the company’s footprint in the U.S. peptide manufacturing sector.

Story Highlights

• Investment: $6.1 million expansion in Rancho Cordova, California

• Focus: Solid-Phase Peptide Synthesis (SPPS) and purification

• Timeline: Lab operational by January 2026; Kilo-scale facility by late 2026

• Goal: Strengthen U.S. peptide manufacturing and reduce supply bottlenecks

• Global Link: Complements $260 million peptide facility in South Korea

The new facility aims to meet the rising domestic demand for peptide development, clinical, and commercial-scale production. The California expansion will not only enhance SK pharmteco’s peptide synthesis and purification capabilities, but also reinforce the company’s commitment to secure, high-quality U.S. manufacturing — a priority area in today’s competitive global biopharma landscape.

“We are expanding our capacity to meet the increasing demand for high-quality, secure U.S. manufacturing, with this investment and others to come,”
— Joerg Ahlgrimm, CEO, SK pharmteco

According to Ahlgrimm, the investment represents a key milestone in the company’s broader strategy to strengthen its U.S. manufacturing base. He described peptides as a rapidly advancing therapeutic category, noting that the project underscores SK pharmteco’s long-term dedication to innovation and sustainable biopharma growth.

“The investment in our California facility represents a key milestone in our strategic growth and demonstrates an unwavering dedication to the domestic biopharma sector,”
— Joerg Ahlgrimm

With peptides gaining importance as next-generation therapeutic molecules, the move places SK pharmteco among the key players racing to provide efficient, scalable peptide synthesis in the United States. The expanded capacity will enable the company to handle lab-scale to kilo-scale production, including critical purification stages, ensuring high-purity, large-volume output — an area that often creates bottlenecks in the peptide manufacturing pipeline.

Building a Stronger Domestic Supply Chain

Ahlgrimm emphasized that SK pharmteco’s role as a global CDMO is more important than ever, particularly as the biopharma industry looks to secure reliable domestic supply chains.

“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,” he said. “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.”

Industry analysts say the investment aligns with a broader trend of reshoring pharmaceutical production and building resilience in critical therapeutic categories like peptides. Although initial SPPS processes are accessible, scaling complex molecules efficiently and consistently to achieve commercial-grade purity remains one of the most persistent challenges. SK pharmteco’s integrated approach — combining lab-scale development, kilo-scale synthesis, and purification — directly addresses this issue.

Timeline and Future Outlook

The new SPPS lab is expected to be operational by January 2026, while the CGMP Kilo-scale facility is slated to open in the second half of 2026. Once complete, the expanded site will strengthen SK pharmteco’s position as a leading CDMO for peptide development in North America.

This U.S. investment also complements SK pharmteco’s $260 million facility in South Korea, announced last year, which focuses on small molecule and peptide production. Together, these initiatives highlight the company’s global commitment to advancing peptide manufacturing technologies and enhancing supply reliability for the biopharma industry.

About SK pharmteco

SK pharmteco is a global contract development and manufacturing organization (CDMO) operating across the U.S., Europe, and South Korea. The company specializes in Active Pharmaceutical Ingredients (API), intermediates, cell and gene therapy technologies, and analytical services for biopharmaceutical companies worldwide.

It is a subsidiary of SK Inc. (KRX: 034730) — the strategic investment arm of SK Group, South Korea’s second-largest conglomerate.

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