Kolon Life Science said Wednesday it has signed a deal to sell 230 billion won ($203 million) worth of Invossa to China Life Medical Center and Hainan Province for five years. Invossa is a cell gene therapy that treats degenerative arthritis.
The contract gives China Life the exclusive rights to seeking the local regulatory approval, distributing and marketing the product in the Chinese island province.
|Kolon Life Science CEO Lee Woo-suk (left) and China Life Medical Centre CEO Anthony Chick hold their agreement contract to distribute Invossa-K, at Kolon Life Science headquarters in Seoul, on Wednesday.|
The contract period is five years from the date of winning approval from the China Food and Drug Administration in Hainan Province.
The two companies stated the minimum purchase quantity on the contract, which guarantees Kolon Life Science’s receiving 14.7 percent of the contract price if the Chinese firm fails to reach the minimum order quantity from the third year.
The Korean company expects Invossa sales in China could reach 57.5 billion won in the first or second year, and 172.7 billion won between the third and the fifth year.
By year, Invossa sales are expected to amount to 2.3 billion won in the first year, 34.5 billion won in the second, 46 billion won in the third, 57.5 billion won in the fourth, and 69 billion won in the fifth, according to Kolon Life Science.
“In China, entry barriers are so high that it is difficult to bring in advanced medical technologies and medicines. However, in Hainan Province, the Chinese authorities are taking the initiative to accept them,” Kolon Life Science CEO Lee Wu-seok said. “Through Invossa sales in Hainan Province, we will promote the treatment’s efficacy and collect Chinese patients’ experiences and data. Based on such data, we will make an opportunity to enter into the mainland of China.”