Lotte Biologics said on the 30th that it signed a letter of intent (LOI) for strategic business cooperation with SK pharmteco to target the global antibody-drug conjugate (ADC) market.
The two companies held a signing ceremony at the venue of CPHI Worldwide 2025, the global pharmaceutical and biotech industry exhibition being held in Frankfurt, Germany. Attending the event were Shin Yoo-yeol, head of global strategy at Lotte Biologics and head of future growth at LOTTE Corporation, Park James, CEO of Lotte Biologics, and Joerg Ahlgrimm, CEO of SK pharmteco, and Andy Fenny, chief commercial officer (CCO), among other executives from both companies.
Through this partnership, the two companies plan to jointly provide a one-stop contract development and manufacturing organization (CDMO) service based on a range of ADC-specialized solutions for global pharmaceutical firms.
ADC is a next-generation anticancer treatment technology that connects a drug to an antibody that seeks out cancer cells to minimize damage to normal cells, and is called a "cancer-cell guided missile." The core of this technology consists of the "antibody" that targets cancer cells, the "drug (payload)" that kills cancer cells, and the "linker" that connects the two.
Based on its current good manufacturing practice (cGMP)-certified production facility at the Syracuse Biocampus in the United States, Lotte Biologics will handle CDMO services specialized in the main ADC processes, from active pharmaceutical ingredient manufacturing to antibody-drug conjugation. SK pharmteco will take charge of chemical synthesis processes such as linkers and payloads, playing a complementary role.
The two companies plan to combine their strengths to build a full-lifecycle CDMO system and provide customized integrated services for clients. They also intend to pursue joint marketing to secure global customers and expand orders. Through this, they aim to respond broadly to clients' chemistry, manufacturing and controls (CMC) requirements and minimize gaps between development and manufacturing.
Lotte Biologics plans to deliver differentiated value based on its antibody-conjugation production infrastructure centered on the Syracuse plant, experience serving global customers, and ability to respond to FDA zero-observation inspections.
The agreement is expected to enable both companies, leveraging their production infrastructure in the Americas and Europe, to respond to the U.S.-centric supply chain reorganization and demand for bio reshoring (relocation of production facilities to the United States).
Park James, CEO of Lotte Biologics, said, "It is highly meaningful as the first partnership formed on the global stage by leading domestic bio affiliates," adding, "We will secure a competitive edge in the therapeutic market for advanced modalities such as ADCs and prove the strength of K-bio to the world."
Joerg Ahlgrimm, CEO of SK pharmteco, said, "This partnership will accelerate the development of next-generation therapeutics and enable both companies to create greater value and deliver innovative new drugs to patients around the world more quickly."