Sam Chun Dang Pharmaceutical said Tuesday it has signed a contract with an unidentified distributor to supply SCD411 (ingredient aflibercept), a macular degeneration biosimilar referencing Eylea, in five European countries: Germany, Spain, Italy, Switzerland, and Austria.

According to the public disclosure, Sam Chun Dang will receive an upfront payment of €20 million ($21.9 million) from the distributor. 

The distributor's name and specific details of the agreement were not disclosed.

The agreement will run for 10 years from the start date of product sales, and Sam Chun Dang will receive 50 percent of the profits from the partner's sales under a profit-sharing arrangement, the Korean company said.

The five countries we signed this time account for about 30 percent of the European market, Sam Chun Dang said.

In Europe, each country has a different drug pricing system and market characteristics, so the company first signed contracts for the five countries where negotiations were completed.

Sam Chun Dang plans to complete contracts for additional 10 countries as soon as drug prices and expected sales are confirmed.

Additional target countries include France and the U.K., which account for 50 percent of the European Eylea market.

Sam Chun Dang is consulting with partners in Korea, Canada, Japan, and Europe, seeking marketing authorization for the vial and prefilled syringe based on the final report of the phase 3 clinical trial of the Eylea biosimilar.

On the news of the contract, Sam Chun Dang shares shot up 18 percent to trade at 74,600 won ($57.9) as of 11:33 a.m. Tuesday.