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World's No. 1 Generic Drug Maker Joins Forces with Handok Pharmaceuticals
October 18, 2013 14:38 l October 18, 2013 22:03
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It will be followed next year by 17 different generic drugs including "Copaxone," an immunomodulator drug used to treat multiple sclerosis. The joint venture will also enter into the business of new patented drugs and active pharmaceutical ingredients (APIs). Itzhak Krinsky, chairman of Teva Japan and head of Business Development Asia Pacific, who visited Korea to attend the ceremony, said, "Given the speed of aging, Korea is a market with high growth potential. We will show how successful joint ventures can be."
Teva, headquartered in Petah Tikva, Israel, has acquired scores of generic drug makers across the world in the past ten years, including Taiyo Pharmaceutical Industry, the third largest generic maker in Japan, in 2011. Since last year, however, after a leadership change, the company has turned toward a strategy of making alliances with local partners
Analysis
Action: Creation of joint venture by Handook Pharmaceuticals with Teva Pharmaceuticals. This article is about creation of JV between Teva which is world’s №1 generic drug maker and Handook – Korean well-known drug manufacturer.
Affect: Handook is known by their original drugs. The main question is why Handook decided to adopt Teva offer? According to the article this action will change the identity of the firm. Firstly, they was a company which produced they own drugs and then they became produce generic drugs, moreover in the JV. Style of the company will totally changed by this action. Probably they decided to change the way of developing in terms of that Teva is largest generic drug maker and have powerfull R&D base which is like an engine forced them into new markets. Probably top management of Handook hopes that success of Teva will spread on new JV. But anyway Handook changed their style, image and Identity through creation of JV with Teva Pharmaceuticals.
Network
GS Caltex sets up plant in Czech city
By Yi Whan-woo
GS Caltex opened a chemical plant in the Czech Republic to increase its supply of compounded resin in Europe, the company said Friday. The plant is built on a 40,000 square meters land at an industrial complex in Karvina, according to the firm, Korea’s second-largest oil refiner. It said the plant can produce 30,000 tons of compounded resin, a functional plastic widely used in manufacturing cars and electronics products, per year. The company added its annual supply of the product will reach 190,000 tons worldwide. “The completion of the plant has allowed us to take a meaningful step in the compounded resin market in Europe as an international manufacturer,” said GS Caltex Vice Chairman and CEO Huh Jin-soo. He was among 150 dignitaries, including Karvina City Mayor Tomas Hanzel, who attended the ceremony on site to celebrate the establishment of the plant. “We’ll continue to enhance our competence in the global market by continuously making investments.” This is the first time that a Korean enterprise is running a plant with a capacity to manufacture 30,000 tons of compounded resin, according to the firm. It said it will sell its polymer compounds to the Korean companies operating in the region. They include the country’s two biggest automakers ㅡ Hyundai Motor and Kita Motors ㅡ and the electronics giant Samsung Electronics, it added. “We also plan to expand our sales to other global enterprises such as Mercedes-Benz, BMW, and Volkswagen in the near future,” GS Caltex said. The firm said it will increase the amount of annual production at the Karvina plant to 50,000 tons by 2016. It also said the plant is anticipated to have annual sales of 1 billion won ($94.1 million) in 2017. GS Caltex sold 6,000 tons of the compounded resin in Europe last year. The total size of the regional market in the same time period was 12,000 tons. With the new plant, the firm said it anticipates increasing annual production of compounded resin to 240,000 tons by 2016 worldwide. GS Caltex has been producing compounded resin domestically as well as overseas. Its domestic plants include the ones at the industrial complex in Yeosu, South Jeolla Province and Jinju, South Gyeongsang Province. |
Analysis
Action: GS Caltex opened a chemical plant in the Czech Republic. “This is the first time that a Korean enterprise is running a plant with a capacity to manufacture 30,000 tons of compounded resin, according to the firm. This plant will produce 30,000 tons of compounded resin, a functional plastic widely used in manufacturing cars and electronics products, per year. The company added its annual supply of the product will reach 190,000 tons worldwide.”
Target: Increasing of worldwide market share through Korean manufacturers in Europe and expand sales to other global enterprises such as Mercedes-Benz, BMW, and Volkswagen.
Affect: As we know Korean Chaebols are well known as independent enterprises with strong vertical integration from raw material supplier to the customer. According this knowledge we can conclude that this is very difficult for Chaebols to set up partnership with someone else, but in recent years we can see opposite situation. And this is interesting that chaebols never support each other in comparison with Japanese corporation, but again, in recent years Korean enterprises more and more support each other in overseas operations. Opening new plant in Czech Republic is the excellent example of establishing networks among Korean companies.
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