Caregen said it has signed a contract to supply up to $143 million worth of ProGsterol (ingredient: deglusterol), a health-functional food that has a mechanism to suppress insulin resistance and increase insulin sensitivity, preventing damage to beta cells in the pancreas that secrete insulin.

According to the company, the exclusive distribution agreement for ProGsterol in Mexico is with I.T. Pharma Mexico SA de CV, a partner with whom CareGen has been working for more than a decade.

I.T. Pharma distributes CareGen professional therapy products in the Mexican market. Through this agreement, ProGsterol will be distributed to more than 15,000 clinics across Mexico.

"Mexico is the second largest diabetes market in Latin America after Brazil," Caregen CEO Chung Yong-ji said. “Until recently, the company had been reviewing supplier selection for Brazil and Mexico and with this agreement, we expect ProGsterol to become a new option for Mexican diabetics with insufficient glycemic control."

Chung stressed that while the contract does not bind the other party to perform, the company will work closely together to complete the contract.

The amount of the contract will be determined based on future customer orders, and is for a total of five years with a transaction value of $143.3 million.

The supply period will begin in October with $2.25 million worth of ProGsterol, followed by approximately $18 million worth of products in 2024.

“We expect to be able to ship the scheduled volume after September this year, when the product registration is expected to be completed,” Chung said.