- Signed an exclusive licensing agreement on development and sale in the Korean market of SI-000413 (product
code) by Sinil Pharmaceutical.

- Expects synergy effects with the existing arthritis drugs and sales of KRW 50 billion for five years after its
release.



Dong-A Pharmaceutical (CEO: Kim Won-bae) signed an exclusive licensing agreement on July 23 with Sinil
Pharmaceutical (CEO: Hong Seung-tong) on development and sale in the Korean market of a botanical arthritis
drug (code name: SI-000413). The signing ceremony, held at the headquarters of Dong-A Pharmaceutical
(located in Yongdu-dong, Dongdaemun-gu, Seoul), was attended by President Kim Won-bae, Park Chan-il,
Director of the Development Division of Dong-A Pharmaceutical, President Hong Seung-tong, and Lee Jung-
min, Director of the Research Center of Sinil Pharmaceutical.



SI-000413 is a new botanical arthritis drug developed by Sinil Pharmaceutical that showed in preclinical trials
higher safety and better anti-inflammation effect than existing arthritis drugs. Under the contract, Dong-A
Pharmaceutical will carry out Phase II and III clinical trials as well as new drug application (NDA) of SI-000413
and holds exclusive distributorship in the Korean market. Dong-A Pharmaceutical plans to start the Phase II
clinical trials within this year and expects sales of at least KRW 50 billion over the five years after the release of
SI-000413.



Sinil Pharmaceutical stated, "We concluded an exclusive licensing agreement on development and sale in the
Korean market with Dong-A Pharmaceutical because the company possesses extensive development know-
how with Stillen, Korea's biggest new blockbuster drug and new botanical drug." Once SI-000413 is released,
Dong-A Pharmaceutical expects a synergy effect of having a stronger product line of arthritis drugs together
with its antiphlogistic analgesics, Aclofen and Melocox. SI-000413 was developed with the support of the
Ministry of Knowledge Economy and selected as a best product by the final evaluation committee of the local
industry technology development tasks in 2008.



Osteoarthritis is a disease characterized by degenerative changes due to loss of cartilage and degradation of
joints that occur with age. Females are three times more likely to be affected by osteoarthritis than males,
which is a senile disease that shows a remarkable increase with age.



According to the Health Insurance Review & Assessment Service, 2.89 million people were treated for
osteoarthritis at medical institutions in 2007. According to the data provided by a specialized medical supplies
market research organization, the arthritis products market is now KRW 350 billion. The rate of market growth
has exceeded double-digit over the past three years, and it is expected to continue growing steadily as the
population ages.