Lotte Biologics said Friday that it has signed a letter of intent (LOI) with Merck Process Solutions for a strategic alliance in biopharmaceutical manufacturing and process development.

Lotte Biologics CEO Richard Lee, Merck Process Solutions Vice President Sebastian Arana, and other key executives attended the signing ceremony.

Through this agreement, the two companies will actively cooperate in supplying raw materials and solutions essential for the development and production of biopharmaceuticals, establishing a stable raw material supply chain system, and building a support system for the creation of “Bio Venture Initiatives” in the Songdo Bio Campus, according to Lotte Biologics.

In 2022, Lotte Biologics signed a letter of intent for business cooperation with Merck Millipore Sigma after concluding a business agreement on plant expansion, manufacturing solutions, and human resource training at the Syracuse Bio Campus in the U.S. last year. Through this collaboration, the company plans to establish a biopharmaceutical production base that meets the quality standards required by global regulatory agencies to meet customers' needs.

Merck recently announced plans to invest more than 300 million euros to establish a bioprocessing production center in Daejeon. The bioprocessing center represents the largest investment by Merck's Life Sciences business unit in the Asia-Pacific region to date. It aims to contribute to the rapidly growing biotechnology industry in the region.

“This collaboration with Merck is an example of a win-win strategy for Korea's transformation into a biopharmaceutical powerhouse beyond Songdo and Daejeon,” Lotte Biologics CEO Lee said. “Through an active partnership with Merck, Lotte Biologics will strive to become a leading CDMO with global standards.”

Merck Process Solutions Vice President Arana said, “For many years, Merck has been driving scientific advancements that impact life and health in the fast-growing Asia Pacific region. We look forward to strengthening our collaboration with Lotte Biologics to continue this positive impact in Korea.”

Lotte Biologics broke ground on its first plant in Songdo Bio Campus in Incheon and is targeting GMP approval by the second half of 2026 and start-up in 2027.