[Edaily Reporter KIM SAE-MI ] BukwangPharmaceutical(003000)announced on the 4th that it has signed a technology export and exclusive supply agreement with Saudi Arabian pharmaceutical company NASAQ for “Dexid Tablets,” a treatment for diabetic polyneuropathy.

This agreement is valid for an initial period of five years and will be automatically renewed in two-year increments thereafter. The minimum purchase amount for the five-year period is approximately $2.66 million (about 3.7 billion won), and the projected supply value, based on sales forecasts, is approximately $4.53 million (about 6.3 billion won). These figures represent 1.8% and 3.1%, respectively, of BukwangPharmaceutical’s revenue for the most recent fiscal year (200.7 billion won), falling short of the 5% threshold typically required for mandatory disclosure of single sales and supply agreements.

This agreement combines the exclusive supply of finished products with plans for technology transfer to enable future local production. Separate compensation for the technology transfer—such as upfront payments, milestone payments, or sales royalties typically included in new drug technology export agreements—was not disclosed.

Under the agreement, NASAC will be responsible for the product approval, marketing, and distribution of Dexid tablets in Saudi Arabia, while BukwangPharmaceutical will support the local approval process and supply the product. The two companies also plan to pursue technology transfer for local production in Saudi Arabia during the contract period.

BukwangPharmaceutical emphasized that this agreement marks the first technology export of a new drug developed in-house in 21 years, following the 2005 export of “Levovir,” a hepatitis B treatment. Until now, BukwangPharmaceutical had focused on technology exports for its pipeline of externally acquired new drugs, such as the diabetes treatment “MLR-1023.”

This agreement was pursued in line with the Saudi government’s pharmaceutical industry localization policy under “Vision 2030.” Saudi Arabia is implementing policies to reduce its dependence on imported pharmaceuticals and strengthen domestic production capabilities. BukwangPharmaceutical plans to first export finished products and then gradually proceed with technology transfer for local production.

NASAC is the pharmaceutical subsidiary of the Saudi conglomerate Zahran Holding Group. Zahran Holding Group operates in various sectors, including construction, infrastructure, energy, and healthcare, and employs approximately 55,000 people.

Lee Je-young, CEO of BukwangPharmaceutical, stated, “This agreement is significant not only because it marks Dexid’s entry into the Saudi market but also because it involves technology transfer for local production,” adding, “Through our collaboration with NASAC, we will use Saudi Arabia as a base to identify new business opportunities in the Middle Eastern market.”