Huons said Monday that it has signed an agreement with Spectra Medical, Huons’ supplier in the United States, to exclusively market its 1-percent Lidocaine 5mL amp., a local anesthetics.
The agreement comes after the company received approval of the company’s abbreviated new drug application (ANDA) from the U.S. Food and Drug Administration last month.
Under the agreement, the company will supply 89.3 billion won ($82.7 million) worth of its local anesthetics for 20 years.
Because of Huons’ high quality, excellent manufacturing facilities and supply capability, the two companies signed a long-term supply contract to solve the chronic supply shortage of lidocaine injection in the U.S. injection drug market.
The company plans to target the U.S. injection market steadily and will continue to increase its sales by expanding export to Latin America and Europe. Spectra Medical intends to quickly distribute the treatment as the existing manufacturers approved by FDA have discontinued sales, causing a severe supply shortage.
“The signing of this long-term supply contract signifies that Huons’ technology has received global approval not only for its quality but also for its production facilities and processes,” Huons Global Vice Chairman Yoon Sung-tae said. “Also, we are the first domestic pharmaceutical company to enter the U.S. injection market directly.”
The company plans to become a global healthcare company that will enhance the reputation of the Korean pharmaceutical industry, Yoon added.