Teva Establishes Venture to Enter Korean Drugs Market

Teva Pharmaceutical Industries, the world's largest generic drug company, has entered into a joint venture with Handok Pharmaceuticals in an attempt to gain a foothold in the burgeoning Korean pharma market.

Under the terms of the joint venture, Teva will contribute its global resources, with responsibilities for manufacturing and supplying a wide range of affordable and innovative medicines, while Handok will handle sales and marketing, distribution, and regulatory affairs. Teva will hold a controlling 51% stake of the joint venture. While financial details were not disclosed, the market cap of Handok Pharmaceuticals is currently 184 billion won (USD 170 million). The business venture will enable patients to gain more access to pharmaceuticals, including therapies such as Teva’s multiple sclerosis treatment Copaxone and various branded generics.

“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 Professor Itzhak Krinsky, head of Teva’s Japanese and Korean divisions. “By utilizing 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.”

“We are glad to open up new business opportunities through this business venture with Teva, which has a broad, unparalleled portfolio of innovative specialty therapeutics, generics, biosimilars and innovative medicines,” said Young-jin Kim, CEO of Handok Pharmaceuticals. “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.”

Handok Pharmaceuticals, founded in 1954, develops and sells both brand and over-the-counter (OTC) drugs, as well as medical devices, diagnostic reagents and vaccines. . The company jointly develops products with other companies in the research and development of oncology, cardiovascular, and central nervous system (CNS) disease treatments.

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