Gilead Sciences expands API supply partnership with Yuhan in US$140M deal through 2027

USA—Gilead Sciences has expanded its long-running collaboration with Korean pharmaceutical manufacturer Yuhan through a new active pharmaceutical ingredient (API) supply agreement valued at 210 billion Korean won (US$140 million).

The contract, disclosed in a regulatory filing with the Korea Exchange this week, will run through the end of 2027 and covers an undisclosed product.

Although the companies have not revealed the specific molecule involved, the agreement underscores Gilead’s continued dependence on external manufacturing partners to support its global supply chain.

Under the terms of the agreement, the value of the contract represents roughly 9.6% of Yuhan’s 2025 revenue, according to the disclosure.

Yuhan operates two API manufacturing facilities in South Korea and has reported steady international growth, with overseas sales increasing 21% in the first quarter.

The latest agreement strengthens its position as a key supplier in the global pharmaceutical manufacturing ecosystem while reinforcing its existing relationship with Gilead.

Expanding history of collaboration 

The two companies have built a sustained partnership over several years, particularly in the HIV treatment space.

In 2018, Gilead entered into a US$45 million arrangement with Yuhan to source API for an HIV therapy, followed by another HIV-related supply contract worth US$81 million signed two years ago.

With the latest agreement, industry reports indicate that this marks the fourth API-related deal between the companies, bringing the cumulative value of their collaboration to approximately US$270 million.

Beyond API supply, the relationship has also included broader licensing and development activity.

In 2019, Gilead paid US$15 million upfront for a stake in a metabolic dysfunction-associated steatohepatitis (MASH) candidate from Yuhan, with the agreement including up to US$770 million in potential milestone payments.

However, the program was later discontinued after preclinical results failed to meet expectations, leading both companies to terminate the collaboration five years later mutually.

Recent activity in manufacturing partnerships

In a separate development, Yuhan recently signed a $38 million, two-year agreement with BridgeBio to supply active pharmaceutical ingredients for its cardiomyopathy therapy, Attruby.

The deal highlights Yuhan’s expanding role as a contract manufacturing partner for global biotechnology firms.

Meanwhile, Gilead continues to refine its manufacturing network across Asia, maintaining long-term sourcing relationships while securing supply continuity for key therapeutic programs.

The companies have also indicated through recent regulatory updates that they are reviewing additional production efficiencies and strengthening quality compliance systems across their manufacturing sites.

Regulatory disclosures from the Korea Exchange also show that the agreement remains part of a broader effort by both companies to stabilize long-term supply chains amid rising demand for outsourced manufacturing services.

 Industry observers note that such agreements increasingly reflect strategic sourcing decisions across the pharmaceutical sector in Asia, particularly as companies seek resilient production capacity and diversified supplier networks.