Logo of Samsung Biologics (Samsung Biologics)
Samsung Biologics has signed an intent letter for a contract manufacturing organization deal worth $81 million with multinational pharmaceutical firm Norvatis Pharma, the South Korean company announced Tuesday.
According to the contract manufacturing giant’s regulatory filing, the two sides on Friday signed the initial contract, which is equivalent to 6.41 percent of the company’s annual sales of 1.57 trillion won ($1.25 billion) last year. It did not reveal which of Novartis’ biopharmaceutical products Samsung Biologics will manufacture.
Samsung Biologics said the intent signing has binding powers between the two firms and it will disclose the confirmed details after they sign the main contract in the future.
The signing marked the first time for Samsung Biologics to secure a deal from Novartis.
“The letter of intent was the first contract between the two firms. We look forward to continue to have cooperative relations through this deal in the future,” said a Samsung Biologics official.
Novartis is the fifth-largest pharmaceutical company in the world with annual revenue of $51.6 billion last year, according to PharmaBoardroom.
By Kan Hyeong-woo (firstname.lastname@example.org