Boryung said Tuesday it had secured a $277 million seven-year supply agreement for the original cancer drug Taxotere with China's Yifan Pharmaceutical, marking the Korean drugmaker’s largest supply contract to date.

The contract marks Boryung’s first major deal since it acquired Taxotere’s global business from French pharmaceutical giant Sanofi for up to 280 billion won ($203.6 million) in September last year. China accounts for the largest share of sales among the countries covered by the acquired business.

The agreement includes annual minimum purchase obligations and compensation provisions if actual purchases fall below contracted volumes, providing greater visibility into long-term sales and revenue. Revenue from the deal will be recognized sequentially in line with product deliveries.

Boryung underlined that the contract with Yifan Pharmaceutical represents more than a product export deal and marks a step toward executing its business model of acquiring global brands, internalizing production and expanding exports through product value enhancement.

“This agreement is significant because Boryung has not merely acquired and owns the global Taxotere brand, but is directly operating the business and securing long-term demand and supply foundations in key markets,” said Kim Sung-jin, Boryung’s chief strategy officer.

“By securing seven years of demand in China, the largest market among the countries covered by the Taxotere business, we have demonstrated that our global essential medicines business is translating into actual contracts and revenue."

Boryung has set its sight on generating more than 300 billion won in annual global revenue by 2030 through the stabilization of Taxotere’s country-level operations, manufacturing transfers, additional global brand acquisitions and expansion of its contract development and manufacturing organization business.

By Kan Hyeong-woo (hwkan@heraldcorp.com)