ST Pharm, a Korean active pharmaceutical ingredient (API) manufacturer, said it signed a contract to supply APIs for a global pharmaceutical company’s blockbuster drug with an annual global sales exceeding 1 trillion won ($748.9 million). 

"ST Pharm has been selected as an API supplier for a blockbuster drug which sells several trillion won annually," ST Pharm said. "The drug previously sourced its ingredients from China, but due to the impact of the (U.S.) Biosecure Act, ST Pharm has been chosen as an alternative supplier."

The company expects to begin supplying production materials in 2025, with the potential for increased supply volumes if biosecurity laws are passed in the future, it added.

ST Pharm stressed that it initially anticipated that its status as a supplier would be determined after a global pharmaceutical company's inspection at the end of this year.

"However, we believe we were selected as a supplier earlier than expected due to the increased likelihood of the Biosecure Act passing in the U.S. House of Representatives full session in September," the company said.

ST Pharm expressed optimism about this new opportunity, stating, "Along with our main oligonucleotide CDMO business, this deal presents a chance for us to make a comeback in the small molecule CDMO sector."

While ST Pharm has not disclosed specific details due to confidentiality agreements, industry sources said the deal likely involves supplying ingredients for a top-selling HIV treatment.