Lotte Biologics said it signed a memorandum of understanding (MOU) with Excellgene, a Swiss-based cell line development company, to collaborate on the CDO (contract development organization) business.

Lotte Biologics said the MOU was part of its plan to promote its CDO business by attracting customers ahead of its mid-to-long-term strategy of expanding its Syracuse plant in the U.S. and building a mega plant in Korea.

Under the accord, the two companies will collaborate on end-to-end CDMO services, ranging from drug cell line development to large-scale contract manufacturing. They may propose joint partnerships with potential customers who request such services, Lotte Biologics said.

Excellgene will focus on cell line development and high-yield process development, while Lotte Biologics will provide services such as master cell bank (MCB) services and clinical and commercial drug production.

However, Lotte Biologics did not elaborate further on the contract, citing contractual reasons.

"To become a global CDMO company, it is important to improve our CDO capabilities, which require a lot of time and specialized personnel," Lotte Biologics CEO Lee Won-jik said. "By collaborating with Excellgene, which has project experience with leading global companies, Lotte will strengthen its competitiveness in winning not only CMO but also CDO orders."

Excellgene CEO Maria João Wurm said, "This collaboration marks Excellgene's entry into the U.S. and Asian markets, where we will provide customers with a full suite of DNA-to-GMP solutions based on our deep expertise together with Lotte Biologics."