Samsung Bioepis, one of Samsung’s healthcare affiliates, said Wednesday it has signed an agreement with U.S. pharmaceuticals giant Merck Sharp & Dohme Corp. to cooperate in the biosimilar sector.

Under the deal with the New Jersey-based company, Samsung Bioepis will take charge of developing, testing and manufacturing biosimilar products, the company said in a press release.

Merck will use its global distribution network to promote and sell biosimilars, officially approved copycat medicines developed after patents for the original biopharmaceuticals expire.

The move is the latest in Samsung’s plan to diversify its revenue sources and nurture new growth engines. In 2010, the country’s biggest conglomerate announced plans to invest 23.3 trillion won ($21.6 billion) in the energy and healthcare sector.

Samsung Bioepis is a joint venture between Samsung Biologics and U.S.-based Biogen Idec. established in February 2012. The two companies invested a combined US$300 million to form the biosimilar venture, with Samsung Biologics holding an 85 percent stake and the U.S. firm owning the remaining stake.

Samsung Biologics is the conglomerate’s biopharmaceutical manufacturing unit formed in April 2011. (Yonhap News)