Yuhan Corporation has secured a significant five-year supply agreement with Gilead Sciences, valued at approximately ₩210.2 billion (around $140 million). This pact, disclosed on May 20, 2026, centers on the provision of antiretroviral active pharmaceutical ingredients (APIs) crucial for HIV treatments. This latest contract, which extends through the end of 2027, brings Yuhan's cumulative orders from Gilead to an estimated $270 million, following a prior 2025 deal worth $80.9 million and earlier, smaller agreements.
The expansion of Yuhan Chemical's Hwaseong plant, completed in April 2026, has amplified its production capacity to 995,000 liters, enabling it to fulfill substantial global API orders. This development aligns with Yuhan Corporation's strategy to leverage its CDMO subsidiary for manufacturing, positioning the parent company as a leading API exporter from South Korea. Analysts project Yuhan's API revenue to climb 22% annually through 2028, fueled by these international collaborations.
Read More: Torrent Pharma Q4 Profit Drops 26% Due to JB Pharma Buy
Amplified Manufacturing Capacity and Market Penetration
Yuhan Corporation's subsidiary, Yuhan Chemical, has significantly boosted its capabilities by expanding its Hwaseong plant. The completion of "Bay 2" in the HB building in April 2026 brought the total production capacity to 995,000 liters. This expansion is a direct response to securing global-level production capacity for API contracts. The parent company, Yuhan Corporation, has strategically structured these arrangements, signing contracts with clients like Gilead and then commissioning Yuhan Chemical for the actual production through its CDMO services.
In addition to capacity expansion, Yuhan is investing ₩150 billion through 2027 to enhance its fermentation and high-potent API production. This investment is driven by what the company describes as "robust demand from North American and European customers." Furthermore, the company appointed Lee Ji-hoon, a former Samsung Biologics executive, as head of CDMO strategy in February 2026, aiming to accelerate its market penetration in Western countries. The Incheon Facility has also received US FDA pre-approval for a tenofovir prodrug in March 2026, simplifying export procedures.
Read More: How IVE singer Liz deals with weight comments in May 2026
South Korea's Growing Role in Global Pharma Supply Chains
The substantial deal between Gilead and Yuhan underscores South Korea's burgeoning status as a key player in the global pharmaceutical manufacturing landscape, particularly in API production. In 2025, South Korea's pharmaceutical exports reached a record $16.8 billion, with APIs constituting over 40% of that value.
Gilead Sciences itself has a history of relying on Korean manufacturers for antiviral APIs, with ST Pharm having supplied ingredients for Gilead's hepatitis C treatments in the 2010s. The current trend indicates a deepening reliance, with approximately 30% of Gilead's API volume for its HIV franchise now originating from South Korea and India. This diversification strategy by major biopharma companies highlights the increasing importance of established and expanding manufacturing hubs like South Korea.
Broader Korean Pharma Industry Momentum
While Yuhan Corporation's API success is prominent, other Korean pharmaceutical companies are also actively pursuing international markets. ABL Bio has advanced its bispecific antibody-drug conjugate, ABL206, with FDA approval for Phase 1 clinical trials. HK inno.N has submitted a New Drug Application (NDA) for K-CAB, marking Korea's 30th domestically developed new drug. HLB is also continuing its efforts to secure U.S. approval for its liver cancer drug. This collective push signifies a broader ambition among Korean drugmakers to gain traction and approvals within the competitive U.S. market.
Read More: Lilly's New Obesity Drug Retatrutide Shows More Weight Loss Than Zepbound
