Bone Medical (ASX: BNE) has reached an agreement granting Hyundai Pharmaceuticals a license to sell Bone's osteoperosis products in South Korea.

In exchange for the rights to sell Bone's CaPTHymone oral pathyroid hormone product, Hyundai will pay the company an upfront payment, as well as milestone payments relating to key moments in the product roll-out stage.

Bone will also be eligible for royalties on annual South Korean annual sales of the product.

The formal licensing agreement is yet to be finalised, and the proposed terms of the agreement have not been disclosed by either party.