Samsung Group said Tuesday that a joint venture has been established between its affiliate Samsung Biologics and U.S.-based Biogen Idec to develop, manufacture and market biosimilars.

Named Samsung Bioepis Co., the new company will be headed by Samsung’s Ko Han-sung, who served as the senior vice president of Samsung strategic business development unit.

With Samsung Biologics investing 85 percent for the joint venture and the remaining amount injected by its U.S. partner firm, the research and development center for the firm has broke ground in Songdo, Incheon with plans of moving into the complex by this year.

Biosimilars are officially approved copycat medicines developed after patents for the original biopharmaceuticals expire.

The two companies held the first general assembly and board meeting for the venture, which is beginning with an initial investment of 330 billion won ($293 million), and hired five directors and an auditor for the new firm.

“The strategic collaboration between Samsung Biologics and Biogen Idec will enable Samsung Bioepis to build the capabilities needed to develop high-quality biosimilars,” Samsung officials said.

Samsung Biologics is Samsung’s biopharmaceutical manufacturing unit formed earlier in April by merging it with U.S.-based Quintiles as the conglomerate aimed to diversify its business portfolio, looking for new cash sources.

Biogen Idec, on the other hand, is a biopharmaceutical firm established in 1978 which concentrates on offering medical treatments for leukemia and blood-related diseases.

By Cho Ji-hyun (sharon@heraldcorp.com)