Samchundang Pharmaceutical "Oral GLP-1 Obesity and Diabetes Treatment Licensing Agreement with Japanese Pharmaceutical Company"

Samchundang Pharmaceutical announced on the 28th that it has signed a term sheet for an exclusive sales contract in Japan with one of the top 5 pharmaceutical companies in Japan for two oral GLP-1 (semaglutide) products: the obesity treatment (Wegovy) and the diabetes treatments (Ozempic and Rybelsus tablets).

The main terms of the term sheet stipulate that sales will commence once the substance patent expires in Japan, with 50% of the profits generated from sales paid to Samchundang Pharmaceutical. The contract period is 10 years with an automatic extension clause.

A company representative stated, “The reason Japan is the second country after the United States to sign this term sheet lies in the market characteristics. Currently, the semaglutide market in Japan, launched only as a diabetes treatment, recorded sales of approximately 580 billion KRW last year within just three years, growing over 90% annually. It is expected to become a blockbuster product surpassing 1 trillion KRW in 2024. If the obesity treatment is added, the market size is expected to expand even further.”

They continued, “Among these, oral products account for 64% of the total market, with sales of 370 billion KRW, indicating high demand for oral formulations. Since many formulation patents expire between 2031 and 2038, the exclusive market potential of oral generic products that circumvent these patents is highly valued, leading most top pharmaceutical companies to seek contract agreements.”

The global semaglutide market has formed a 66 trillion KRW scale market despite shortages in raw material production and unstable supply from the original manufacturer. It is expected that, as in Japan, oral GLP-1 products will come to dominate the market. Following the United States and Japan, Samchundang Pharmaceutical is actively negotiating contracts with top pharmaceutical companies in other regions related to obesity and diabetes treatments, and the company expects additional achievements to materialize soon.

A company representative added, “Considering the growth potential of oral GLP-1 (semaglutide) in the Japanese market and the generic exclusivity period of Samchundang Pharmaceutical’s products due to formulation patent circumvention, sales generated in Japan alone are expected to have a significant impact on the company’s future revenue and profits.”