Daewoong Pharmaceutical, a leading South Korean pharmaceutical company will export its new diabetes drug Envlo Tab. (active ingredient:enavogliflozin), to Russia and the Commonwealth of Independent States (CIS).
The company revealed on Friday that it has finalized a contract with JSC Pharmasyntez to export Envlo Tab, Korea's 36th new drug, to six countries within Russia and the CIS region.
The deal, valued at about 77.1 billion won ($60 million), includes technology fees and accounts for 6.03% of Daewoong's recent sales.
The contract, marking a long-term commitment, extends from Nov. 30, 2023, to Nov. 29, 2033.
Envlo Tab, an innovative sodium-glucose cotransporter-2 (SGLT-2) inhibitor, has rapidly made its mark globally, expanding to eight locations worldwide within six months of its domestic launch in May.
The drug, requiring only 0.3mg for efficacy, matches or surpasses existing SGLT-2 inhibitors, marking a significant advancement in diabetes treatment.
Clinical trials have showcased its effectiveness in reducing glycated hemoglobin (HbA1c) and fasting blood sugar levels, along with an excellent safety profile.
With Pharmasyntez, one of Russia's top five pharmaceutical companies, leading the distribution, Envlo Tab is well-positioned for successful market penetration in Russia and the CIS.
Pharmasyntez's robust distribution network across Russia and the entire CIS enhances Envlo Tab's accessibility.
The diabetes drug market in Russia and the CIS, estimated at about 900 billion won in 2021, presents a significant opportunity for Daewoong, especially as SGLT-2 inhibitors, which account for about 140 billion won of this market, continue to grow rapidly, showing a 32% annual increase since 2019, according to IQVIA.
Daewoong Pharmaceutical is also targeting markets in the Middle East and ASEAN regions.
The company has submitted applications for Envlo Tab's approval in Saudi Arabia, Indonesia, the Philippines, and Thailand. Daewoong's ambitious plans include launching Envlo Tab in 15 countries by 2025 and in 50 countries by 2030.
Write to Dae-Kyu Ahn at
powerzanic@hankyung.com
