SC Engineering "Cellontech signs 55 billion KRW supply contract for 'Katizol' with Chinese Sahwan Pharmaceutical"

Cellontech, a subsidiary of SC Engineering, is targeting the joint cartilage regenerative medicine market following its entry into the Chinese beauty and plastic surgery market with Sihuan Pharmaceutical.

Cellontech, a bio company specializing in regenerative medicine, announced on the 31st that it has signed a supply contract with Sihuan Pharmaceutical for the collagen intra-articular injection ‘CartiZol.’ This is the second contract with Sihuan Pharmaceutical following the supply agreement for the collagen cosmetic filler ‘TheraFill’ in September last year.

Through this contract, Cellontech secured a minimum order quantity (MOQ) worth approximately 55 billion KRW over five years from Sihuan Pharmaceutical. The total sales volume is expected to increase further depending on the growing demand for CartiZol in China. According to the international journal Arthritis & Rheumatology, the number of osteoarthritis patients in China was the largest in the world at 132.81 million as of 2019.

Sihuan Pharmaceutical will be responsible for the entire process of local supply and market expansion, including obtaining sales approval from the National Medical Products Administration (NMPA) in China, distribution, and marketing of CartiZol within China. Sihuan Pharmaceutical, a large pharmaceutical group listed on the Hong Kong Stock Exchange, has an extensive distribution network supplying medicines and medical devices to hospitals across China. It is also well known as the Chinese distribution partner of Hugel, a Korean company that first entered the Chinese botox market with the botulinum toxin product ‘Retivo.’

CartiZol is the first collagen intra-articular injection developed domestically by Cellontech. Registered in the U.S. Food and Drug Administration (FDA) Drug Master File (DMF), CartiZol contains bio-collagen, a component of the synovial membrane, which supplements damaged joint cartilage. Unlike existing products, it not only alleviates pain but also supports the natural healing process of joint cartilage, providing differentiated competitiveness.

The company expects CartiZol’s entry into the Chinese market to be expedited due to factors such as △ its recognition for safety and efficacy through domestic product approval and new medical technology certification △ clinical references including domestic clinical trials and publication in international academic journals △ the initiation of the Chinese NMPA marketing authorization process led by the major Chinese pharmaceutical company Sihuan Pharmaceutical.

Hyung Jin-woo, CEO of Cellontech, said, “This second contract with Sihuan Pharmaceutical was made at their active request, highly valuing our bio-collagen technology and the market potential of CartiZol,” adding, “Based on Cellontech’s technological competitiveness, we have achieved overseas supply contracts totaling at least 120 billion KRW over the past year.”

He continued, “Since MOQ literally means the minimum order quantity, considering the scale and growth potential of overseas markets, the supply volume is likely to increase with expanding demand,” emphasizing, “We will strategically review numerous supply proposals currently under discussion and continue to enhance mid- to long-term growth centered on expanding overseas sales networks.”

This content was produced with the assistance of AI translation services.