South Korean drug maker Korea United Pharm Inc. aims to increase sales of incrementally modified drugs (IMD) to around 50 percent in its entire sales by next year, said Kang Duk-young, founder and chief executive officer of Korea United Pharm.

The modified drugs market is more “sustainable” than the generic drug market that is already too crowded by many competitors, said Kang in an interview with Maeil Business Newspaper on Wednesday. He expected the company would be able to achieve the goal to raise the sales of modified drugs in its entire sales to 50 percent by next year. The revenue from modified drugs has jumped to 25 percent against its total revenue to 176.9 billion won ($155 million) last year from 4 percent four years ago.

The pharmaceutical firm has three IMDs in its pipeline this year. Last month, it released modified Cilostan CR, an antithrombotic drug that contains 200mg of cliostazol per tablet, by cutting the amount of cliostazol in half. It also plans to release modified versions of its bronchitis and antithrombotic medications in June and the fourth quarter, respectively, this year.

Kang believes that focusing on IMDs is the only way to maintain the competitiveness in the global pharmaceutical market. “We have to export IMDs rather than generics in order to compete with more affordable products supplied from China or India,” he said. “We are exporting our drugs to 40 countries, but the number is not important. Maintaining sustainability is more important.”

The company signed a license-out deal worth 74.3 billion won for its Cilostan CR with a Chinese drug maker last year and plans to complete a negotiation on clinical trials this year. The Phase 1 clinical study for the Clanza CR, an anti-inflammatory drug, in China is also expected to be completed within this year.

Kang said the company also aims to increase the number of IMDs to 30 over the next five years. It has released six IMDs in the market so far, and is currently conducting clinical studies on 26 products. It has spent about 13 percent of its revenue on research and development, with last year’s R&D investment reaching 13.3 percent.

The company also plans to broaden its business beyond China and South East Asia to the Middle East, Africa and Latin America. “Our operation in Vietnam is very stable, and the products manufactured in the country are shipped to many Asian countries,” said Kang. The company set up retail subsidiaries in Indonesia and Thailand this year. Its Clanza CR released in 2010 has been registered in Vietnam, the Philippines and Myanmar, and exported to four countries including Russia and Ukraine.

The drug maker also plans to export its smart factory. “We plan to export automated factories on a turnkey basis in which we are responsible for every construction process along with machines, patents and technologies as a package deal,” said Kang. He added there are some companies from the Middle East and Africa who have shown interest in building a smart factory with the company’s aid.

As of 11:50 a.m. on Thursday, shares of Korea United Pharm rose 1.51 percent to 20,200 won in Seoul trading.

By Kim Yoon-jin

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]