Daewoong Pharmaceutical said Friday that it has signed a contract with JSC Pharmasyntez, a Russian pharmaceutical company, to export diabetes drug Envlo (enavogliflozin) to Russia and five countries in the Commonwealth of Independent States (CIS) region.

The contract is valued at approximately $60 million including royalty. Through JSC Pharmasyntez, Daewoong targets quickly completing the phase 3 clinical trial in Russia to supply Envlo.

In addition to Russia, JSC Pharmasyntez has a distribution supply chain in five countries in the CIS: Kazakhstan, Uzbekistan, Belarus, Azerbaijan, and Armenia.

Envlo is an SGLT2 inhibitor, also known as a gliflozin or flozin. This drug modulates the sodium-glucose cotransporter located in the nephron, a functional unit of the kidneys, lowering blood sugar by inhibiting glucose reabsorption in the kidneys.

Envlo showed bioequivalent or greater efficacy at just 0.3 mg, less than one-third the dose of existing SGLT-2 inhibitors in the phase 3 clinical, Daewoong said.

According to clinical research firm IQVIA, the market size of SGLT-2 inhibitors in Russia and the CIS has been growing at a CAGR of 32 percent since 2019.

"There is an actual need for high-quality therapies for the healthcare system and patients in the Russian Federation," JSC Pharmasyntez President Vikram Punia said. "We expect to bring new SGLT-2 inhibitors to the market by collaborating with Daewoong."

"The SGLT-2 inhibitor is emerging as a major trend in the global diabetes treatment market, so this agreement to export Envlo is significant," Daewoong Pharmaceutical CEO Jeon Seng-ho said. "We will increase the number of countries where Envlo is sold to 50 countries by 2030 and build it into the best diabetes treatment."

Daewoong is also expanding its business in the Middle East and ASEAN region, by submitting marketing authorizations for Envlo in Saudi Arabia, Indonesia, the Philippines, and Thailand.