First commercial deal for Teva in East Asian territory outside Japan
Teva Pharmaceutical Industries is to set up a business venture in South Korea with Handok Pharmaceuticals. The move will allow the Japanese drugmaker to gain a foothold in the US$14bn Korean pharmaceutical market.
Teva will have a controlling stake in the new business, with profits to be split 51%:49%. Teva will contribute its global resources and take responsibility for manufacturing and supplying a range of affordable medicines. Handok’s primary responsibility will be in sales and marketing, distribution, and regulatory affairs.
‘This is another significant step in our strategy to expand Teva’s presence in growing markets and excluding Japan, this is our first alliance in East Asia,’ said Itzhak Krinsky, chairman of Teva Japan, chairman of Teva South Korea and head of business development Asia Pacific.
‘By utilising Teva’s broad portfolio, R&D capabilities and its global infrastructure and know-how coupled with Handok’s expertise and strong reputation in Korea, Teva and Handok plan to assume a prominent position in the Korean pharmaceutical market.’
Young-jin Kim, Handok’s CEO, added: ‘We expect this business venture to contribute greatly to the Korean pharmaceutical industry by supplying medicines at more affordable prices and providing innovative treatment solutions for CNS, respiratory and women’s health.’
The new business is expected to commence activities in the next few months, subject to applicable regulatory approvals. Financial details of this agreement are not being disclosed.
Handok is a leading pharmaceutical/healthcare company in Korea. It has a core business focus in diabetes, cardiovascular, oncology, human vaccines, medical devices, diagnostics and consumer health.
Founded in 1954, Handok grown as a joint venture with Hoechst/Aventis/Sanofi and has established strategic collaborations in several areas with multiple multinational pharmaceutical companies.