- Dong-A expects Flivas and its own urology products to create synergies

- Mutual sales growth of both Dong-A’s own independently developed drugs and others’ brand name licensed
drugs will bolster corporate growth



Dong-A Pharmaceutical announced on April 15 that the company and Asahi Kasei
Pharma of Japan (President: Tsutomu Inada) entered into an exclusive licensing agreement by which the
former will exclusively develop and sell the latter’s prostatism treatment, Flivas (active ingredient: naftopidil), in
the Korean market.



Flivas, for which Dong-A acquired the exclusive license for development and sales in Korea, is a new drug to
treat benign prostatic hyperplasia (BPH)-caused dysuria. It enlarges the urethra by blocking alpha 1-
adrenergic receptors (α1-AR) to suppress the contraction of the prostatic and urethral muscles. Clinical trials
conducted in Japan found that compared with existing treatments, Flivas effectively improves urination,
especially in patients whose symptoms also included frequent night urination or nycturia. Launched in 1999 in
Japan and now ranked second in the Japanese BPH drug market, Flivas has turned out to be a blockbuster
with proven safety and marketability.



In Korea, BPH drug sales totaled KRW158.6 billion last year, much more than the erectile dysfunction drugs (est.
KRW79.4 billion in 2008), making BPH the most attractive segment of the urology drugs market.



Dong-A plans to initiate the required procedures this year, including domestic clinical trials and obtaining
marketing approval, to launch the drug in 2011.



“The introduction of this BPH drug will create synergies together with Dong-A’s own developed erectile
dysfunction drug, Zydena, and [GlaxoSmithKline-licensed] anti viral drug, Valtrex, which will in turn further
consolidate the Company’s position in the urology area,” says CEO KIM Won-bae of Dong-A, adding, “Driven
by mutual growth in Dong-A’s own developed new drugs and licensed brand drugs, Dong-A will become more
competitive and rise as a global leader in the pharmaceutical market.”






[Annex 1] Introduction to Japan’s Asahi Kasei Pharma



The Asahi Kasei Group has six companies in such areas as chemicals and
pharmaceuticals. Asahi Kasei
Pharma recorded ¥127.0 billion in sales in 2008, and its major products include Elcitonin (osteoporosis drug),
Bredinin (immunosuppressant), and Flivas (BPH drug). Its R&D is focused on the development of drugs for
urology, orthopedics, and the central nervous system.
The company recently succeeded in developing the world’s first-ever thrombomodulin drug (anticoagulant)
through genetic recombination, which began being marketed as Ricomodulin in May 2008. Asahi Kasei Pharma
is also active in many other health areas like diagnostic reagents, health products, functional food additives,
and contact lenses.





Dong-A Pharmaceutical, one of the Korea’s leading research-based pharmaceutical and
healthcare companies, is committed to working for a better tomorrow by following its core value of integrity,
excellence and respect for humanity. Dong-A Pharmaceutical has kept its No. 1 position in the Korean
pharmaceutical market since 1967 with its Zydena(erectile dysfunction treatment), Stillen(gastritis treatment),
Bacchus(refreshing tonic) and other 120 products. For further information, please visit www.donga-pharm.com