Teva Pharmaceutical Industries, an Israel-based pharmaceutical company, and Handok Pharmaceuticals, a pharmaceutical/healthcare company in Korea, have agreed to establish a business venture in South Korea, allowing Teva to gain entrance into the Korean pharmaceutical market, currently valued at approximately $14 billion.

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," said 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."

Young-jin Kim, CEO of Handok, said, "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. 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.