Various biotech firms are pushing for technological advancements through R&D and strategic collaborations to gain a competitive advantage. To that end, Samsung Biologics, the biotech division of the conglomerate Samsung Group, has reportedly signed an intent letter with the multinational pharmaceutical behemoth Novartis International AG, to enter into a contract development and manufacturing agreement worth USD 81 million.

According to the South Korean biotechnology company's regulatory filing, the initial contract, which is roughly equal to 6.41% of the company's accrued yearly revenue of about USD 1.25 billion in the previous year, was signed by both parties on Friday i.e., 3rd June. 

In a similar context, Novartis, one of the world's top five pharmaceutical companies, generated an annual turnover of USD 51.6 billion last year, cited by credible reports.

While the specifics of Novartis' biopharmaceutical products that Samsung is intending to manufacture are yet to be revealed, the company has stated that it will disclose the confirmed details after both parties sign the main contract in the upcoming months.

Samsung, however, maintained that this does not detract from the intent signing, which has ensured that the two entities are bound to each other through this arrangement.

It is worth noting that this is the first time they have struck a deal with Novartis. An official from Samsung Biologics stated that the letter of intent denoted the first contract between the two behemoths and that it will only continue to strengthen the collaborative relationship between the two companies.

In other news, Novartis' drug combination of Tafinlar and Mekinist in the trial therapies of a sample of patients experiencing a common childhood brain cancer helped cause the tumors to shrink by more than 11%, demonstrating extremely promising results.

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