[Edaily Reporter Kim Seung-kwon ] Boryung(003850)has secured a long-term supply contract worth approximately 380 billion won in the Chinese market, led by its global original anticancer drug “Taxotelle” (active ingredient: docetaxel).

This is the first major contract secured since the company completed the acquisition of the global Taxotelle business from Sanofi last May. Observers note that Boryung has solidified a long-term revenue base in China, which accounts for the largest share of sales among the countries where Taxotelle is marketed.

◇Beyond Acquisition to ‘Direct Operation’… Securing Demand in a Key Market

Boryung announced on the 22nd that it has signed a seven-year long-term contract with Yifan Pharmaceutical, a company listed on the Shenzhen Stock Exchange, to supply Taxotere in China.

The contract value is $277,144,985 (approximately 383.7 billion won), making it the largest supply contract Boryung has ever signed. The agreement includes provisions for annual minimum purchase obligations, as well as a compensation mechanism that applies if actual purchase volumes fall short of the agreed-upon quantities. Revenue will be recognized sequentially in accordance with the product supply schedule.

This contract is significant in that it marks the first tangible achievement Boryung has achieved by directly managing its global business—rather than merely acquiring Taxotel. Since the acquisition, Boryung has personally overseen all aspects of the business, including product sales, country-specific partnerships, quality control, and supply chain management.

The company explained that by proactively securing medium- to long-term demand in key markets, it has simultaneously enhanced both revenue visibility and supply stability for its global business.

The contracting party, Yifan Pharmaceutical, is a Chinese pharmaceutical company with comprehensive capabilities in the production, sales, and marketing of pharmaceuticals, including anticancer drugs. It has experience in handling the approval, distribution, and sales of original anticancer drugs within China.

Kim Seong-jin, Chief Strategy Officer (CSO) at Boryung, stated, “This agreement is significant not only because we acquired the global brand Taxotere, but also because we are directly operating the business to secure long-term demand and a supply base in key markets.” He added, “By securing long-term demand in China for seven years, we have demonstrated that our global essential medicines business is translating into actual contracts and sales.”

◇Production Shift to Yesan Campus…Replicating the Success Formula of Gemza and Alimta

For the time being, Boryung will continue supplying Taxotere through its existing production system, but plans to gradually shift production to its Yesan Campus in South Chungcheong Province by completing technology transfer and regulatory approval procedures in each country. The strategy is to leverage the Yesan Campus’s cytotoxic anticancer drug production capabilities—which include high-potency substance containment facilities and aseptic processes—to simultaneously enhance supply stability and profitability.

This is an approach Boryung has already proven successful. Previously, Boryung acquired the domestic business for original cytotoxic anticancer drugs—including “Gemza” and “Alimta”—from Lilly and transitioned to in-house production. Since then, the company has expanded its production capabilities by entering the contract development and manufacturing (CDMO) business for cytotoxic anticancer drugs with global companies.

Building on this agreement, Boryung plans to further expand its business model, which follows the sequence of “acquisition of original drugs → in-house production → global supply.” While working to stabilize Taxotere operations in each country and transition production, the company will simultaneously pursue the acquisition of additional global original brands, export its own products, and expand its CDMO business. The company aims to achieve global sales of at least 300 billion won by 2030.

Meanwhile, in April 2023, Boryung signed an agreement with U.S. space company Axiom Space to establish a joint venture (JV) for a joint space project. The joint venture, in which the two companies will invest in a 51:49 ratio, will be established in South Korea. Based on “Axiom Station”—which is intended to replace the International Space Station (ISS)—the two companies will jointly pursue business ventures in South Korea utilizing Axiom Space’s technology and infrastructure.