Huons said Friday that it has signed a memorandum of understanding on strategic material supply with MFC to develop new drugs.

Under the MOU, Huons will receive high-quality raw materials for new drug development from MFC, including key pharmaceutical ingredients such as Ilaprazole, Gemigliptin, Varenicline, and Sacubitril Valsartan.

Huons said it would use the ingredients to strengthen the development of improved drugs and global business expansion by localizing raw materials and increasing the efficiency of product mass production.

“We will be able to prioritize the development of new products by reducing our dependence on overseas sources of raw materials and supplying superior raw materials,” Huons CEO Yoon Sang-bae said. “Based on this agreement, we have laid the foundation for joint research activities on various products.”

MFC CEO Hwang Sung-kwan said, "To supply high-quality products, we will promote win-win cooperation to develop products that benefit both parties and accelerate the expansion of our good manufacturing practice (GMP) production facilities.”

By securing a stable source of sales for the supply of raw materials for newly developed items, MFC will enhance management stability and become a technology-intensive company, Hwang added.