Celltrion said it signed a contract manufacturing organization (CMO) contract with Teva Pharmaceutical to supply raw materials for Ajovy, a migraine drug.

The contract is worth about 110 billion won ($82.8 million), 5.8 percent of Celltrion’s 2021 sales and its period is from Aug. 19, 2022, to March 31, 2024, the company said Friday.

Celltrion started the full-scale commercial production of Ajovy in 2017 through technology transfer and manufacturing facility scale-up in collaboration with Teva. The latest contract will increase accumulated payment from Teva to Celltrion regarding the supply of raw materials for Ajovy to about 335 billion won.

"We have focused on developing and producing antibody biopharmaceuticals while maintaining friendly relations with our long-time partner Teva through the CMO contract," a Celltrion official said. "We will do our best for sustainable growth by selectively carrying out the CMO business for raw materials targeting the global market to generate additional profits for the company."

Ajovy (ingredient: fremanezumab) is a long-acting antibody treatment that prevents headaches in episodic or chronic migraine patients through a CGRP (calcitonin gene-related peptide) inhibitory mechanism.

Its developer Teva is Celltrion’s partner in the North American market, marketing and selling Celltrion’s blood cancer treatment Truxima and breast cancer therapy Herjuma in the region.