Under the terms of the agreement, the Israel-based generics giant will contribute its global resources, and be responsible for manufacturing and supplying a wide range of affordable and innovative medicines. South Korean Handok will be responsible for sales and marketing, distribution and regulatory affairs.

Teva will have a controlling stake in the new venture, gaining 51% of generated profits. The joint venture is expected to commence activities in the next few months, subject to receipt of applicable regulatory approvals. Financial details have not been disclosed.

The deal is Teva’s first in East Asian territory outside Japan and ‘is another significant step’ in Teva’s strategy to expand its presence in growing markets, according to Mr Itzhak Krinsky, Chairman of Teva Japan, Chairman of Teva South Korea and Head of Business Development Asia Pacific.

Mr Krinsky expects that Teva’s broad portfolio [including the multiple sclerosis blockbuster Copaxone (glatiramer acetate) and its branded generics], along with its R & D capabilities and its global infrastructure and know-how coupled with Handok’s expertise and strong reputation in South Korea, will enable the companies ‘to assume a prominent position in the Korean pharmaceutical market’.

Mr Young-Jin Kim, Handok’s Chief Executive Officer, said the venture is expected to ‘contribute greatly to the Korean pharmaceutical industry by supplying medicines at more affordable prices and providing innovative treatment solutions for central nervous system, respiratory and women’s health’.

The agreement will expand Teva’s presence in Asia and enable Teva to gain entrance to the Korean pharmaceutical market, valued at approximately US$14 billion.

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