South Korea’s Sam Chun Dang Pharm Co. (SCD) has sealed a 3.17 billion won ($2.95 million) deal to supply four incrementally modified drugs for glaucoma treatment with Germany’s ophthalmologic company OmniVision GmbH.

According to the Kosdaq-listed drug maker on Monday, the deal, which accounts for 2.1 percent of its 2016 sales, will be valid for 10 years from the period it submits documents for approval in each country in Europe.

Although it is a conditional deal that requires submission of registration approval documents and should meet the guidelines of European Union’s good manufacturing practice, which is a minimum standard drug makers must meet in their production processes, SCD expects the supply deal to go through without fail as it has prepared the deal for a long time. The Korean pharmaceutical company expects it would rake in total 140 billion won from the latest deal over the next 10 years.

An unnamed official from SCD said the company’s facility managed by DHP Korea Co., a unit that produces the glaucoma treatment, was already inspected by EU member states for good manufacturing practice last month, and it expects to acquire related certification next month.

The four new disposable drugs for glaucoma treatment do not contain preservatives that could be harmful to the eye. And the latest export deal is the first of its kind for a Korean pharmaceutical company involving modified drugs for glaucoma treatment.

SCD said that OmniVision is actively engaged in sale and supply of medicines in Europe, allowing it to advance into the region’s eye drop instillation market that is estimated to be worth 7 trillion won.

SCD has inked contracts to supply ophthalmic treatments with U.S. and European drug makers in recent years. Its sales are expected to exceed 1 trillion won over the next 10 years.

Despite the supply deal announcement, shares of SCD ended 3.54 percent down at 35,400 won on Monday.

By Kim Hye-soon and Lee Eun-joo

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