Chairman &CEO Kang Duk-young of Korea United Pharm
KUP signs a $69 mil. export
contract with JJK of China
Korea United Pharm, Inc. (KUP) has achieved a milestone in the export of pharmaceutical products. United Pharm signed a US$69 million agreement on the export of its newly developed pharmaceuticals with China’s Jiangxi Jimin Kexin Pharmaceutical Co., Ltd. (JJK) on July 27 this year.
Under the provisions of the accord, JJK will perform clinical tests on KUP-developed “Cilostazol CR tablet and Aceclofenac CR tablet.” Once the drugs are approved and registered, they will be supplied to China as finished pharmaceuticals. Korea United Pharm is due to receive licensing fees from JJK. It will take about two years before the clinical tests are completed and the drugs are approved by the Chinese pharmaceutical regulatory authorities.
Jiangxi Jimin Kexin Pharmaceutical, based in Jiangxi, China, recorded sales of 8 billion yuan (roughly 1.4 trillion Korean won) in 2012 with a total work force of 6,000. Established in 1992, the firm specializes in patent drugs.
A key provision of the agreement is that JJK will shoulder costs for the clinical tests on Cilostazol CR tablet and Aceclofenac CR tablet. “The export deal demonstrates that Korea United Pharm’s incrementally modified drugs have improved enough to merit attention from China, a global pharmaceuticals market, as well as Europe,” said KUP President & CEO Kang Duk-young. Once the new drugs are approved and registered, he said, Korea United Pharm intends to continuously supply its finished pharmaceutical products to Chinese clients. “The deal is also significant in that Korea United Pharm has secured a beachhead for exports of Korea’s pharmaceuticals to China,” said CEO Kang.
Cilostazol CR tablet and Acelofenac CR tablet are administered orally once a day. Resultantly, the drug compliance has shown significant improvement. Previously, they were administered twice daily. These tables are prepared in the form of a bilayered tablet--immediate-release and slow-release. They have optimum pharmacological clinical effects 24 hours a day.
Of particular note, Cilostazol CR tablet is an incrementally modified drug which was released in June this year. Given the fact that an export deal was reached barely one month after the drugs hit the market, KUP’s pharmaceutical technologies have gained global recognition.
Both Cilostazol CR tablet and Aceclofenac CR tablet were developed and commercialized in line with the informatization project and IP incubating technology development program which are supervised by Korea Health Industry Development Institute (KHIDI). The development of the new drugs was also supported by the Advanced Technology Center which is associated with the Ministry of Industry, Trade and Energy (formerly the Ministry of Knowledge Economy).Beginning from its clinical development, Cilostazol CR tablet was granted development support from Chungcheong Institute for Regional Program Evaluation which is also associated with the Ministry of Industry, Trade and Energy.
Currently, China is the world’s fifth largest pharmaceutical market which is gaining growing attention from multinational pharmaceutical companies. In 2010, the Chinese pharmaceutical market totaled $160 billion. The market size was estimated to have climbed to $466 billion in 2012. Of them, antithrombotic products were valued at $840 million and antiinflammatory analgesic drugs totaled $300 million. Sales of these pharmaceuticals are expected to grow by 20% every year.
Meanwhile, Korea United Pharm signed a deal with the global pharmaceutical firm TEVA in February this year for the export of its first incrementally modified drug, Aceclofenac CR tablet, to Russian and Eastern Europe. Korea United Pharm has released three incrementally modified drugs so far. By 2015, the number is projected to rise to 10.
KUP produces more than 250 types of pharmaceuticals with the full coverage of product lines and exports them to over 30 countries around the world. In a bid to grow into a global pharmaceutical firm, KUP established a R&D center, and acquired KGMP (Korea Good Manufacturing Practices) in 1992.
KUP’s major offerings include ethical drugs, supplemental health foods, house care products, innovative antineoplastic drugs, antibiotics and lipid-lowering agents. Currently, the firm is doing a great deal of research on novel therapy and gene therapy which is expected to bring a revolutionary access to treatment of various diseases. k