On February 26, 2026, Samchundang Pharmaceutical, a leading South Korean drug manufacturer, made headlines with a major announcement: it had signed an exclusive license and commercialization agreement with a prominent European pharmaceutical company for its oral GLP-1 drugs—generics of Rybelsus and Wegovy—targeting 11 European countries. This move, as reported by several Korean news outlets including 의학신문, 프레스나인, and 연합뉴스, marks a pivotal step in Samchundang’s global expansion and could reshape the competitive landscape for diabetes and obesity treatments across Europe.
The contract, which covers the United Kingdom, Belgium, Luxembourg, Finland, Greece, Ireland, Netherlands, Norway, Portugal, and Sweden, is valued at approximately 5.3 trillion KRW (about 30 million euros in upfront and milestone payments, or roughly 50.8 billion KRW). According to 팜뉴스 and 더바이오, Samchundang will receive 60% of the net profits from product sales—a revenue-sharing structure considered unusually favorable in the pharmaceutical industry, where such high profit shares for the licensor are rare.
The agreement grants Samchundang exclusive rights to supply and sell its oral GLP-1 generics in these 11 European countries for an initial period of 10 years from the first product sale, with automatic renewals every five years thereafter. This exclusivity, as detailed in 디지털투데이 and 뉴시스, positions the company to capture a significant share of the rapidly growing European market for GLP-1 medications.
What makes this deal especially notable is Samchundang’s proprietary SNAC-free formulation technology. The company’s approach, which eliminates the need for the SNAC (sodium N-[8-(2-hydroxybenzoyl) amino] caprylate) enhancer used in the original drugs, allows Samchundang to sidestep existing formulation patents. According to statements from company representatives cited by 의학신문 and 더바이오, “Our SNAC-free formulation technology not only avoids the original patents completely, but also achieves production costs at just 10% of the sales price—a level of cost competitiveness confirmed by our partner’s due diligence.”
For context, the original substance patents for semaglutide (the active ingredient in Rybelsus and Wegovy) are set to expire around 2031. However, the SNAC-based formulation patents are expected to remain in force for another five to six years beyond that, effectively blocking other generic competitors from entering the market. Samchundang, leveraging its SNAC-free technology, can circumvent these barriers and maintain market exclusivity during this window—potentially securing a near-monopoly in these countries for several years.
The European countries included in the initial deal are described as “tender-driven markets,” where government procurement and competitive bidding play a central role in pharmaceutical sales. This structure, according to 팜뉴스 and 더바이오, means that companies with strong patent positions and cost advantages can dominate market share. “If you secure patent avoidance and price competitiveness, you can essentially take the whole market,” a Samchundang spokesperson explained. “Winning 60% of the net profits in such a market is almost unprecedented.”
Samchundang’s strategy for Europe doesn’t stop with these 11 countries. The company has divided the continent into three segments—government tenders, private insurance markets, and Eastern Europe—to tailor its rollout. The current agreement focuses on the government tender segment, with plans to expand into other major EU markets such as Germany, France, Italy, and Spain in the near future. “We have secured the initial 11 countries and are now moving to finalize contracts with the remaining core EU markets,” the company said in a statement published by 뉴시스 and 연합뉴스.
The financial implications are significant. The European market for semaglutide, even just for diabetes treatment, is currently estimated at around 9 trillion KRW and is growing at an annual rate of roughly 45%. Company officials project that, with the full launch of their products—including future indications for obesity—the market could surpass 30 trillion KRW. Notably, while Wegovy has not yet been approved for obesity treatment in Europe, the diabetes segment alone already represents a massive opportunity. Samchundang expects its entry to accelerate overall market growth.
The contract’s details, including the identity of the European partner and the breakdown of milestone payments, remain confidential at the partner’s request. However, Samchundang has confirmed that it will work closely with its partner to apply for regulatory approvals in each country. Should regulatory approvals not be obtained, there is no penalty or obligation for compensation—a risk-mitigating clause that offers additional security for Samchundang, as reported by 디지털투데이.
The February 26 announcement had an immediate impact on financial markets. As reported by 디지털투데이, Samchundang’s stock price jumped by 27,000 KRW to 610,000 KRW on the day of the disclosure. The company’s recent financials, as of December 2024, showed total assets of 519.8 billion KRW, liabilities of 170.4 billion KRW, equity of 349.4 billion KRW, annual sales of 210.9 billion KRW, operating profit of 2.6 billion KRW, and a net loss of 5.1 billion KRW. Listed on the KOSDAQ since October 2000, Samchundang is now betting on its global ambitions to turn the tide and drive future profitability.
This European contract follows closely on the heels of a partnership with Japan’s Daiichi Sankyo in January, further strengthening the company’s credentials in global pharmaceutical circles. Samchundang’s management has emphasized that this deal is just one part of a broader global strategy, which includes plans for North American market entry and oral insulin projects. “We will continue to prove our global milestones and enhance corporate value,” the company stated, highlighting the growing trust in its S-PASS platform technology.
In sum, Samchundang Pharmaceutical’s exclusive licensing deal for oral GLP-1 generics in 11 European countries stands as a significant achievement, blending innovative patent strategy, aggressive market segmentation, and robust financial terms. As the company gears up for regulatory submissions and further expansion, all eyes will be on how this bold move reshapes the European landscape for diabetes and obesity treatments—and whether Samchundang’s SNAC-free technology can deliver on its promise of market dominance.