L&C Bio Signs Exclusive U.S. Supply Deal for 'Lituo'... Worth at Least $60 Million

Contract runs through the end of 2031.

L&C Bio is entering the U.S. market with Rituo, a human tissue-derived extracellular matrix (ECM) product. The contract is worth at least $60 million (approximately 82 billion won).

On October 13, L&C Bio said it had signed an exclusive supply agreement for its Rituo series in the United States with a local partner that specializes in human tissue and bioproducts and operates a tissue bank. The agreement runs for about five years, from October 13 through the end of 2031.

The U.S. partner is said to have a network of approximately 17,000 hospital and clinic customers, a tissue bank license allowing it to supply human tissue products throughout the United States, and distribution infrastructure. Its name has not been disclosed due to contractual confidentiality obligations and will be announced when the first shipment is made to the United States.

The contract value was calculated based on the minimum purchase amount for Rituo 150 mg. The annual minimum purchase amount will increase each year, starting at approximately $900,000 this year, followed by $7.2 million in 2027, $10.8 million in 2028, $11.7 million in 2029, $14.4 million in 2030, and $16.2 million in 2031. The company said it set the minimum contract value after considering its current production capacity, expansion plans, and ability to ensure a stable supply.

Rituo Fine and Rituo V are not included in the contract value. The agreement allows for the two products to be supplied separately in the future, depending on production capacity and demand in the U.S. market.

The agreement also states that the two companies may discuss expanding or changing the distribution structure, or acquiring a tissue bank, depending on future business conditions. This leaves open the possibility of L&C Bio expanding its business in the United States, including through direct entry into the local market.

L&C Bio is currently expanding its existing production facilities and building a new plant in Dongtan. As production capacity increases, the company plans to increase the volume of Rituo 150 mg supplied to the United States and pursue supply of Rituo Fine and Rituo V as well. This year, it will provide product training and conduct academic activities for local medical professionals and leading experts to build a foundation for its initial entry into the market.

L&C Bio Chairman Lee Hwancheol said, "We will build a network of local medical professionals and leading experts this year, begin stable supply in 2027, and grow Rituo into a leading ECM brand in the U.S. market. We will continue to expand the scale of our U.S. supply in line with increased production capacity."

This content was produced with the assistance of AI translation services.