CrystalGenomics to supply anti-osteoarthritis drug to Russia for $2 mn

South Korea's first-generation biopharma venture company CrystalGenomics Inc. on Wednesday said it received a $2 million (2.6 billion won) order from a government-run Russian pharmaceutical company for its new anti-osteoarthritis drug Acelex, whose active ingredient is Polmacoxib.

CrystalGenomics said it concluded a second supply contract worth $43.8 million with PharmArtis International and can earn up to $77.6 million in milestone (performance technology) fees based on additional sales.

PharmArtis is devising sales and marketing strategies, adding that its latest order allows Acelex's official launch in Russia as early as next month.

The Russian market for COX-2 inhibitors like Acelex is surging with high growth of over 30% per year, and the spillover effect could spread to member countries of the neighboring Eurasian Economic Community (EEC) like Belarus, Kazakhstan, Armenia and Kyrgyzstan. EEC regulatory authorities are also reviewing approval of Acelex.

As South Korea's first new bio venture drug, Acelex selectively inhibits only COX-2 among the cyclooxygenases COX-1 and COX-2, both of which act on the formation of inflammation- and pain-causing prostaglandins. The drug relieves stomach cramps and gastrointestinal disorders, two side effects of non-steroidal anti-inflammatory medication.

“Following our initial shipment in late March, we received a second order," a CrystalGenomics source said. "Sales in Russia are eventually expected to raise our performance."

Write to Min Su Han at hms@hankyung.com