[Edaily Reporter NA EUN-KYUNG ] On the 9th, IlyangPharmaceutical(007570)announced in a regulatory filing that the contract with Russian pharmaceutical company R-Pharm for the supply of raw materials and finished products, as well as the technology export, for the leukemia treatment “Spect” (active ingredient: radotinib) has been terminated.

According to the disclosure, the termination payment amounts to approximately 14.5 billion won, equivalent to 9.8% of the company’s revenue at the time the contract was signed in 2014. This figure includes the initial payment of $3 million and milestone payments totaling $10 million. IlyangPharmaceutical received only $1 million of the initial payment, and since local marketing authorization was not granted, there were no product supply transactions.

Russian regulatory authorities required additional clinical trials involving local Caucasian patients, but Alfarm failed to conduct them, causing the marketing authorization to be delayed. Subsequently, as Alfarm expressed its intention to discontinue the project, the two companies decided not to extend the contract further.

IlyangPharmaceutical stated, “Since no actual product supply took place, there is no financial loss resulting from the termination of the contract.”