April 20, 2024

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[[THE INVESTOR] Sam Chun Dang Pharm has signed a deal with US-based Breckenridge Pharmaceutical to export seven types of its generic eye drops, the South Korean drug maker said on Dec. 14.

With the deal, Sam Chun Dang will tap into the US market, the largest ophthalmic drug market valued at around 9 trillion won (US$7.70 billion).

Under the terms of the agreement, the Korean pharma firm is eligible for up to 7.8 billion won in development, registration and sales milestones over the next 10 years.

Total sales from the products are expected to reach 400 billion won over the cited period. The figure is on a par with total annual sales of eye drop products in South Korea, according to the firm.

“The contract shows that we can overcome the structural limitation of generic drugs which are considered to be unable to generate high profits,” the company said in a press release.

Shares of the company surged 17.94 percent to close at 11,900 won, making it one of the top gainers on the KOSDAQ market.

In a bid to create new revenue streams, Sam Chun Dang has shifted its focus to eye treatments since 2006. It acquired artificial tears manufacturer DHP Korea in 2012 as part of the plan.

In 2015, the firm eye drop manufacturing facility obtained good manufacturing practice certificate from UK’s Medicines and Healthcare products Regulatory Agency. Currently, it is preparing to apply for the FDA’s version in the US.

Breckenridge Pharmaceutical, an affiliate of Spain-based Esteve Group, posted some 800 billion won in sales last year by marketing and distributing more than 70 drugs in the US.

By Park Han-na (hnpark@heraldcorp.com)