Delivering the latest news

Key visual

MOU May 31, 2024

Lotte Biologics and Merck Sign Letter of Intent (LOI) for Strategic Partnership



Collaboration Following the 2022 Agreement for the Expansion of the Syracuse Bio Campus Plant
Synergy Expected in the Establishment of a State-of-the-Art Biopharmaceutical Factory

LOTTE BIOLOGICS (CEO Richard Lee) and Merck announced on May 31 that they have signed a Letter of Intent (LOI) for a strategic partnership in biopharmaceutical manufacturing and process development.

The signing ceremony was attended by key executives, including Richard Lee, CEO of LOTTE BIOLOGICS, and Sebastian Arana, Executive Vice President of Merck.

Through this agreement, the two companies plan to cooperate on the following initiatives:
- Supply of essential raw materials and solutions for the development and production of biopharmaceuticals
- Establishment of a reliable supply chain for raw materials
- Supporting the development of the 'Bio Venture Initiative' within the Songdo Bio Campus

Previously, LOTTE BIOLOGICS had signed a Memorandum of Understanding (MOU) with Merck Millipore Sigma in 2022 for the expansion of the Syracuse Bio Campus, manufacturing solutions, and workforce training in the U.S. Following this, a business cooperation LOI was signed last year. Through this collaboration, the company aims to establish a biopharmaceutical production base that meets the quality standards required by global regulatory agencies, thereby fulfilling customer requirements.

Merck recently announced the investment of more than € 300 million into a new Bioprocessing Production Center in Daejeon, South Korea. The new site is the largest investment by Merck's Life Science business sector in Asia-Pacific to date and demonstrates the company’s commitment to expanding its capacities in the fast-growing region.

Richard Lee, CEO of LOTTE BIOLOGICS, stated, "This collaboration with Merck is significant as it represents a win-win strategy that will help South Korea become a global leader in biopharmaceuticals beyond Songdo and Daejeon. We will strive to make LOTTE BIOLOGICS a key player in the global CDMO market through this active partnership with Merck."

Sebastian Arana, Executive Vice President of Merck Global Process Solutions Business, stated, "With decades of presence in this fast-growing region, we are committed to driving scientific progress that impacts life and health. We are proud of the impact we are creating in South Korea and look forward to strengthening our collaboration with LOTTE BIOLOGICS."

Meanwhile, LOTTE BIOLOGICS began construction of Bio Plant 1 in Songdo, Incheon, last March, with the goal of obtaining GMP approval by the second half of 2026 and commencing operations in 2027.