Teva Pharmaceutical (NYSE: TEVA ) has entered a business venture with Handok Pharmaceuticals of South Korea. In an effort to gain entrance into the Korean market, which Teva estimates to be $14 billion, it agreed to partner with Handok to market and distribute pharmaceuticals and health-related services,Teva announced this week.
The terms of the agreement call for Israel-based Teva to maintain a controlling stake in the partnership, equal to 51% of the profits. For its majority ownership, Teva is responsible for the development and manufacture of medications, in addition to making available its global resources. Handok, founded in 1954, brings its sales and marketing distribution system to the partnership, and will also manage South Korea's regulatory affairs.
According to a statement from Itzhak Krinsky, chairman of Teva Japan and Teva South Korea and head of business development of Asia Pacific, "This is another significant step in our strategy to expand Teva's presence in growing markets and, excluding Japan, is our first alliance in East Asia."
Regulatory approvals are required. The companies expect to begin activities in the "next few months." Financial details of the agreement were not disclosed.