Teva enters business venture agreement with Handok
Teva Pharmaceutical Industries and South Korea-based Handok Pharmaceuticals have entered into an agreement to establish a business venture in South Korea. The move will enable Teva to enter the Korean pharmaceutical market. Under the terms of the agreement, Teva will contribute its global resources, and will be responsible for manufacturing and supplying a wide range of medicines. Handok's primary responsibility will be in sales and marketing, distribution and regulatory affairs. Teva will have the controlling stake in the new business, with a profit split of 51 per cent to Teva and 49 per cent to Handok.
Commenting on the agreement, Teva noted that, excluding Japan, this was its first alliance in East Asia, and represented a significant step in its strategy to expand its presence in the growing markets in the region. The business venture is expected to commence activities in the next few months, subject to receipt of applicable regulatory approvals. Financial details were not disclosed.
Handok was founded in 1954, and operates in the arenas of prescription and OTC drugs. The firm initially began business through a technology collaboration with Hoechst in 1957, and later established a joint venture with Hoechst in 1964. Handok became a public company in 1976, and now operates a joint venture partnership with Sanofi.
The generics market in South Korea is large and well-established, with estimates ranging massively between 15.0 and 70.0 per cent of the entire pharmaceutical market in the country. The difficult regulatory and reimbursement system has traditionally worked in the favour of local domestic manufacturers.