South Korean biotechnology firm Samsung Biologics and UK-based pharmaceutical firm AstraZeneca have signed a long-term supply agreement, worth around $330.8m.

Under the terms of the agreement, Samsung Biologics will offer large-scale commercial manufacturing of drug substances in its Plant 3 along with drug product to support AstraZeneca’s biologics therapeutics, increasing the total value to $545.6m.

AstraZeneca global operations and IT EVP Pam Cheng said: “This long-term partnership with Samsung Biologics strengthens our manufacturing capabilities, and ensures we are well-positioned to continue to deliver our exciting portfolio of new and established biologics medicines to patients with quality, speed and efficiency.”

Samsung Biologics and AstraZeneca have signed an LOI prior to the supply agreement

The partnership is expected to enable AstraZeneca to expand its biologics manufacturing capabilities into the Asia Pacific, by leveraging Samsung Biologics’ expertise and capabilities in the manufacturing of high-quality biopharmaceuticals.

AstraZeneca said that the collaboration agreement with Samsung Biologics is expected to ramp up the Korean bio-health innovation.

Prior to the current supply agreement, an LOI has been signed in June this year, between Biologics CEO Tae Han Kim and AstraZeneca Korea country president Juno Kim.

Samsung Biologics is an integrated CDMO providing advanced contract development, manufacturing, and laboratory testing services.

The company claimed that it supports the development and manufacturing of biologics products to meet the needs of biopharmaceutical companies around the world, with a large capacity facility at a single site, with the fastest throughput.

Samsung Biologics CEO Tae Han Kim said: “We are very proud to partner with AstraZeneca, a company that uses a rich history of science-led innovation to serve patients.

“At Samsung Biologics, our people share this common purpose to help our clients bring innovative solutions to an array of diseases, and we look forward to delivering on our promise to aid in AstraZeneca’s ongoing expansion programme.”