17 December 2012

Teva and Handok to Establish Business Venture in South Korea

- Korean pharmaceutical market valued at approx. $14 billion 
- Teva will have controlling stake in the new business venture 
- First alliance for Teva in East Asia outside Japan 

Jerusalem & Seoul, Korea – 16 December 2012 (BUSINESS WIRE) - Teva Pharmaceutical Industries Ltd. and Handok Pharmaceuticals Co., Ltd. announced today their agreement to establish a business venture in South Korea, allowing Teva to gain entrance into the Korean pharmaceutical market, currently valued at approximately USD 14 billion. Under the terms of the agreement, Teva will contribute its global resources, with responsibilities for manufacturing and supplying a wide range of affordable and innovative medicines. Handok’s primary responsibility will be in sales and marketing, distribution, and regulatory affairs. Teva will have a controlling stake in the new business venture, with a profit split of 51%/49% to Teva and Handok, respectively

"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,” commented Prof. Itzhak Krinsky, Chairman of Teva Japan, Chairman of Teva South Korea and Head of Business Development Asia Pacific. “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. The business venture will enable patients to gain more access to the treatments they need including innovative therapies, such as our multiple sclerosis treatment Copaxone® and branded generics.” 

"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,” stated Young-jin Kim, Handok’s CEO. “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 Teva-Handok business venture is expected to commence activities in the next few months, subject to receipt of applicable regulatory approvals. Financial details of this agreement are not being disclosed. 

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA) is a leading global pharmaceutical company. Headquartered in Israel, Teva is the world's largest generic drug maker, with a global product portfolio of more than 850 molecules and a direct presence in about 60 countries. Teva currently employs approximately 46,000 people around the world and reached $18.3 billion in net revenues in 2011. 

HANDOK Pharmaceuticals is a leading innovation-driven pharmaceutical/healthcare company in Korea. Handok, founded in 1954, has grown as a joint venture with Hoechst/Aventis/Sanofi and has established strategic collaborations in several areas with multiple multinational pharmaceutical companies. 

Source: Teva