Market Expansion
On July 20, DongA ST (CEO Park Chan-il) announced that the company signed a license contract with Russian Geropharm for its recently-developed diabetes drug Evogliptin.
Under the contract, DongA ST receives deposits in addition to a royalty for the technology. The company will also receive royalties on the sales, in addition to the additional benefits accrued from the export of raw materials. Geropharm is responsible for the sales, clinical approval, and development of Evogliptin in Russia, the Ukraine, and Kazakhstan.
Founded in 2001, Geropharm is at the forefront of Russian pharmaceutical companies in producing original drugs. The company is unique in possessing technology to produce insulin as a raw material, as well as a finished product. The company has also been ranked among the top 30 innovative companies for three consecutive years since 2012. The company posesses many types of insulin and insulin analogs. The company also has direct sales networks in Russia, the Ukraine, and Kazakhstan.
The oral diabetes market in Russia is the largest among the three countries, posting 320 billion won (US$276 million). In particular, the market size for a DPP-4 inhibitor amounts to 70 billion won (US$61 million). The DPP-4 inhibitor market represents more than half of all of the oral anti-diabetic drug market, which is expected to grow further.
Evogliptin is effective in curing type 2 diabetes, and has less risk of glycemia and other side effects like weight gain and hypoglycemia. In particular, patients with renal failure can also take the drug without special worries about the dosage. In 2008, the Ministry of Health and Welfare recognized Evogliptin as an innovative new drug, and as a result, the company received support which lasted from May 2008 to March 2010.
Park Chan-il said, “As a result of the company’s hard work in developing new drugs, Evogliptin can make inroads into global markets like China, India, Nepal, Brazil, and 17 Latin countries, followed by Russia, the Ukraine, and Kazakhstan,” adding, “We will do our best for further advances into global markets.”