Lotte Biologics said it has made an equity investment in Pinot Bio, a Korean developer of antibody-drug conjugate (ADC) platforms.

Through this equity investment, the two companies plan to form a strategic business partnership and strengthen ADC platform technology development and production synergies.

However, Lotte Biologics did not disclose the size of the investment, citing contractual reasons. 

As a result of the investment, Lotte Biologics will secure a preferred supplier status for the production of antibodies and ADCs to be used in Pinot Bio's ADC pipeline. Additionally, there is a possibility that the two companies may explore signing an additional contract development organization (CDO) service partnership for ADCs.

“The equity investment marks the beginning of Lotte Biologics' Bio-Venture Initiative to contribute to the growth of the value chain of the domestic pharmaceutical and biotechnology industry,” Lotte Biologics said in a statement.

Earlier, Lotte Biologics had unveiled its Bio-Venture Initiative, aimed at providing facilities for bio-venture companies at its mega-plant in Korea, which is set to be completed by 2034. This initiative is expected to create opportunities for technology development cooperation and collaborations.

“We are pleased to collaborate with Pinot Bio, which has excellent capabilities in the field of ADC, and this will accelerate the expansion of Lotte Biologics’ contract development and manufacturing organization (CDMO) business for ADC,” Lotte Biologics CEO Lee Won-jik said.

Going forward, the company will continue to develop its own capabilities and expand open innovation to create mutually beneficial partnerships with potential bio-venture companies, Lee added.