SK Chemicals Co., a petrochemical unit of South Korea's third-largest conglomerate SK Group, said Wednesday that it has signed a deal with global vaccine maker Sanofi Pasteur Inc. to jointly develop and sell a next-generation vaccine.

SK Chemicals will develop the vaccine for pneumococcal with Sanofi Pasteur and produce it at its plant in Andong, 268 kilometers southeast of Seoul, the company said in a regulatory filing. Pneumococcal is a bacterial infection responsible for up to 1.6 million deaths a year worldwide, according to the World Heath Organization.

Sanofi Pasteur will be in charge of clinical testing and getting the vaccine approved for global sales as well as marketing, it said.

SK Chemicals will receive 50 billion won ($46.7 million) for providing its vaccine technology. The two companies have agreed to share sales proceeds, the local company said without elaborating.

The two companies expect to start production as early as 2020.

SK Chemicals said it expects to generate sustainable profits through the sales network of Sanofi Pasteur. (Yonhap)