ST Pharm has signed a contract with a U.S. biotech to supply raw materials for an oligonucleotide therapeutic drug worth about 38.5 billion won ($27.76 million), the company said in a public filing.

The other party to the contract was not disclosed at its request.

The contract is 13.5 percent of ST Pharm's consolidated sales of about 285 billion won last year. The contract period is 18 months through Dec. 31, 2025, and covers the United States.

The contract calls for supplying raw materials for oligonucleotide therapeutics produced by ST Pharm, extending the company's cooperation with the U.S. biotech company, which has been executing similar contracts for the past three years.

It is particularly noteworthy as the supply of quantities for commercialized products.

In a corporate presentation at the Korea Investor Relations Service last Thursday, ST Pharm said that it has oligo contract development and manufacturing (CDMO) capabilities that rank among the top three in the world, emphasizing the expansion of oligo production facilities and the resulting sales growth.

ST Pharm explained that it has a pipeline of 20 to 30 oligonucleotide therapeutics expected to get approval or expanded indications within three years, including hyperlipidemia, spinal muscular dystrophy, myelodysplastic syndrome (MDS), familial chylomicronemia (FCS), and hereditary angioedema.

The company is building a second oligo plant in its Ansan factory site in Gyeonggi Province to expand its capacity to produce raw materials for oligonucleotide therapeutics. It held a groundbreaking ceremony in September last year, to expand its production capacity from 6.4 mol to 14 mol upon completion of the second Oligo plant.