Daewoong Pharmaceutical said it has signed an agreement with Aghrass Healthcare Limited, a United Arab Emirates (UAE)-based company, to license out gastroesophageal reflux treatment, Fexuprazan.

Under the accord, Aghrass Healthcare Limited will license and sell Fexuprazan in six Middle Eastern nations -- UAE, Saudi Arabia, Qatar, Bahrain, Kuwait, and Oman. In addition, Daewoong will receive 99.1 billion won ($83.7 million), including milestone payments. Fexprazan is a new P-CAB (potassium-competitive acid blocker) drug treating gastroesophageal reflux by reversibly blocking proton pumps that secrete stomach acids from the stomach wall, according to Daewoong.

With this contract, Daewoong plans to launch Fexuprazan in Saudi Arabia, UAE, and Bahrain by 2024 and Kuwait, Oman, and Qatar by 2025.

Cigalah Group, the parent company of partner Aghrass Healthcare, has one of the best sales networks in the Gulf Cooperation Council countries, so it will be of great help for Fexuprazan to grow as a gastrointestinal disease treatment that dominates the Middle East in the future, the company said. Cigalah Group ranked third in the Saudi pharmaceutical market in 2019.

"By signing technology export contracts in the Middle East in addition to the U.S., China, and Latin America, the company has proven potential of Fexuprazan as a global blockbuster once again, Daewoong's global business head, Park Hyun-jin, said.

Based on Fexuprazan's advanced technology, the company will provide better treatment options to patients worldwide suffering from gastrointestinal diseases, Park added.