SEOUL, South Korea--(BUSINESS WIRE)--Dong-A Pharmaceutical Co Ltd:
Dong-A Pharmaceutical Co Ltd (000640 KS) announced that its subsidiary, Dong-A Pharm-tech, entered into a five-year, US$50 Million contract with Otechestvennye Lekarstva OJSC to market Zydena, Dong-A's erectile dysfunction drug, in Russia.
Under the terms of the agreement, signed on October 15, 2007, Otechestvennye Lekarstva OJSC, one of the largest Russian pharmaceutical firms, will pay both upfront fees and running royalty on sales for the life of the contract.
Considering the potential of Zydena, expectations are that revenue could reach US$100Million.
This agreement represents the second significant licensing arrangement for Dong-A, surpassing the contract signed last October with SCP Corp. (Saudi Arabia) for marketing Zydena in Gulf Cooperation Council territories. Expansion into Russia, the leading pharmaceutical market in Eastern Europe, and the Middle East represents a significant milestone in Dong-A’s Strategic Plan to turn the company, Korea’s largest pharmaceutical company, into a world class, R&D driven drug company.
Zydena is distinguished by its long duration of action and low incidence of unfavorable side effects such as vision disturbances and muscle pain. Due to Zydena's excellent efficacy and safety profile, Otechestvennye Lekarstva OJSC will make a significant investment in marketing and promotion to Russian physicians.
Dong-A expects that sales of Zydena in Korea will represent in excess of 20% of the erectile dysfunction drug market there in 2007, its second year on the market.
Mr. Dong Hyun Park, President of Dong-A Pharm-tech, stated that "We are extremely pleased to have Otechestvennye as our partner in Russia. This deal positions Zydena for solid sales in the rapidly evolving pharmaceutical market in Eastern Europe and furthers our strategy for marketing Zydena in numerous key countries in Asia and South America in advance of our entry into North America and the European Union. Based on success in the Russian market, we may accelerate our expansion into bigger markets such as the U.S., Europe and Japan by 2009, when we expect the FDA Clinical Phase III Studies to be completed."
Zydena has a strong intellectual property position with patents in more than 30 countries. Dong-A Pharm-tech successfully completed its Phase II clinical studies in the U.S. for the drug and will proceed to completing all clinical studies required for filing a New Drug Application in the U.S. and Europe.
Dong-A Pharm-tech expects to increase global marketability of Zydena by developing the product for use in new indications such as pulmonary arterial hypertension and benign prostatic hyperplasia, given its favorable half-life and once-a-day duration.
About Otechestvennye Lekarstva OJSC
Otechestvennye Lekarstva OJSC is one of the largest Russian pharmaceutical companies with recent turnover of US$150 million. The company has 5,000 employees and markets over 200 products in Russia and in 20 other countries.
Otechestvennye Lekarstva OJSC was selected as the best pharmaceutical company in Russia in 2005 and 2006 by the Russian government.
About Dong-A Pharm-tech Co., Ltd.
Dong-A Pharm-tech is a late-stage pharmaceutical company incorporated in Korea, focused on the development and commercialization of udenafil and a number of other drug candidates worldwide outside Korea.
Statements under the Private Securities Litigation Reform Act: with the exception of the historical information contained in this release, the matters described herein contain forward-looking statements that involve risk and uncertainties that may individually or mutually impact the matters herein described, including but not limited to FDA review and approval, product development and acceptance, manufacturing, competition, and/or other factors, which are outside the control of the Company.