Lotte Biologics signs manufacturing MOU with Huons Global

Industry

Published: 28 Oct. 2022, 14:23

Lotte Biologics signs manufacturing MOU with Huons Global

Huons Global President Song Soo-young, left, and Lotte Biologics CEO Lee Won-jik, pose for a photo after signing an MOU on Oct. 27 at Huons headquarters in Pangyo, Gyeonggi. [LOTTE BIOLOGICS]

Lotte Biologics signed a memorandum of understanding (MOU) with Huons Global to manufacture the Pangyo, Gyeonggi-based company's biopharmaceuticals.

This is Lotte Biologics' first contract manufacturing organization (CMO) deal since it was established in June. CMO refers to companies that provide drug manufacturing services on a contract basis.

Under the agreement, Lotte will be in charge of manufacturing biopharmaceuticals that are currently developing by Huons. The manufacture deal includes sample products that will be used in clinical trials, as well as for mass production once completed.

More details will be discussed in the future, the company said.

In June, Lotte announced its entrance to the biopharmaceutical industry with the purchase of a Bristol-Myers Squibb (BMS) bio plant in Syracuse, New York for $160 million.

The acquisition includes the Syracuse manufacturing plant and equipment, and the existing 450 employees.

The plant’s capacity stands at around 35,000 liters, which CEO Lee Won-jik said is slightly larger than Samsung Biologics’ first plant in Songdo, Incheon.

Earlier in the year, Lotte announced that it will spend a total of 2.5 trillion won over the next 10 years to make Lotte Biologics one of the top 10 CMO companies in the world.

Huons Global President Song Soo-young and Lotte Biologics CEO Lee signed the agreement on Oct. 27 at Huons headquarters in Pangyo, Gyeonggi.

BY SARAH CHEA [chea.sarah@joongang.co.kr]