Samchundang Pharm (000250) is drawing investors' attention as its stock surged in after-hours trading on the 2nd. The stock is showing strength following a disclosure announcing that the company signed an exclusive sales and supply agreement for a biosimilar with a Japanese company.

◇ Surges Over 5% in After-Hours Trading... Nearing the 200,000-Won Mark

As of 4:13 p.m. on the 2nd, Samchundang Pharm is trading at 192,300 won in the after-hours market, up 9,600 won (+5.25%) from the previous day. The intraday high reached 198,000 won, coming close to the 200,000-won level.

◇ Exclusive Japan Sales and Supply Agreement for SCD411 with Daiichi Sankyo Espha

The notable news of the day is Samchundang Pharm's disclosure on its exclusive sales rights and supply agreement in Japan. In a regulatory filing on the 2nd, the company announced it signed an exclusive sales and supply agreement with Japan's Daiichi Sankyo Espha Co., Ltd. for SCD411, a biosimilar for treating macular degeneration.

SCD411 is a biosimilar with aflibercept as its active ingredient, and the contract includes both a 2mg pre-filled syringe and vial products.

Under the agreement, Samchundang Pharm will hold the Japanese product approval under its own name through a foreign special approval scheme under Article 19-2 of Japan's Pharmaceutical and Medical Device Act. The contract counterparty, Daiichi Sankyo Espha, will serve as the designated marketing authorization holder (D-MAH), handling sales and license maintenance in Japan.

The product supply period runs from the contract date until 10 years after the product's launch, after which it is automatically extended in two-year increments.

◇ Contract Value and Milestones Not Disclosed... Existing Agreement with Senju Pharmaceutical Terminated by Mutual Consent

However, specific contract terms, including the contract payment, total milestone amounts by stage, and profit-sharing ratio, were not disclosed. Samchundang Pharm explained that it did not disclose these details in accordance with mutual agreement and contractual confidentiality obligations.

The company also said it terminated by mutual consent its prior exclusive sales and supply agreement for SCD411 in Japan with SENJU Pharmaceutical Co., Ltd. In effect, it has ended the existing contract and signed an exclusive sales and supply agreement with a new Japanese company.

◇ Conditions Investors Should Note

The agreement also includes conditions that investors should be aware of. According to the disclosure, the contract payment and milestone amounts received at each stage carry no obligation for repayment. However, some milestones are contingent on the product's sales launch, so if the related conditions are not met or the timeline is delayed, the receipt timing could be pushed back or the amounts may not be received at all.

Profit-sharing revenue also depends on actual sales performance, so no amount is currently confirmed. The disclosure also states that the contract could be terminated in the event of a material breach or bankruptcy by the counterparty. Details on the contract payment, milestones, and profit-sharing will remain undisclosed until November 2, 2036, at the counterparty's request to protect business confidentiality.

◇ Focus Shifts to the Regular Session on the 3rd

With the stock showing strength in after-hours trading following the contract announcement, attention is now turning to how the market will assess the deal. Key points of interest include whether Samchundang Pharm can break above the 200,000-won level and how this Japanese contract will translate into actual revenue and profits going forward.

However, since after-hours trading is still in progress, the final gain could change. The stock's movement in the regular session on the 3rd is another point to watch.

[※ This article is for reference in investment decisions, and the final responsibility for investments lies with the investor.]