Dong-A Pharmaceutical (CEO Kim, Won-Bae) is to sign an export contract with Mainland Pharmaceutical of
Shanghai in its headquarters office on Stillen® (gastritis treatment), a new drug developed from natural
products at 10:00 am on February 6 which is worth USD 20 million for five years.




The Chinese pharmaceutical market is showing the fastest growth among other industries in China with the
annual rate of 16.6%. The annual market size is expected to grow up to USD 67.3 billion in 2005 and USD
105.8 billion in 2010, among which, the gastroenterological market is worth KRW 4.6 trillion (world’s third) and
the stomach-related treatment one worth KRW 1.9 trillion – six times bigger than Korea’s.




Against this backdrop, Mainland Pharmaceutical is planning to launch a task force team on Stillen®. It is
also expected to seal a joint marketing contract with Shanghai Pharmaceutical (Group) Co., Ltd. of Shanghai,
the number one pharmaceutical company, based on commercial effects of pharmaceuticals developed from
natural products in China. It would lead to exports of USD 500 billion by selling to not only mega cities such as
Shanghai and Beijing but also throughout the mainland.




An official at Dong-A Pharmaceutical said, “By signing a mega-scale export contract on Stillen®, one of
Korea’s representative new drugs, Korea’s export competency in new drugs was reaffirmed. This contract
following that on Gemcit®, the anti-cancer treatment, and Gonadopin®, the infertility treatment last year,
would position Dong-A Pharmaceutical as Korea’s biggest exporter to China in terms of scale.”




Stillen® was launched in December 2002 as Korea’s first gastritis treatment after the research period of 10
years. As its efficacy was highly recognized, its sales grew 41.5% in 2006 year-on-year to reach KRW
44.5 billion, showcasing its status as the dominant blockbuster in the gastritis treatment market.




Meanwhile, the contract signing ceremony is to be attended by President Kang, Shin-Ho of Dong-A
Pharmaceutical, President Yang Jie of Shanghai Mainland Pharmaceutical and Vice President Wu Jian Wen of
Shanghai Pharmaceutical (Group) Co., Ltd.




President Yang Jie of Shanghai Mainland Pharmaceutical said, “The export contract signed today will initiate
promoting the excellence of new Korean drugs in the Chinese brand name drug market,” adding, “Amid high
interest of Chinese doctors in Korean brand name drugs and their high confidence to Dong-A Pharmaceutical,
Stillen® whose excellence has been proven in Korea would definitely become a blockbuster in China.”




Currently, Stillen®’s registration has been completed in the Philippines, and contract negotiations on it with
big pharmaceutical firms in Turkey are underway, so it is likely to hit the sales of over USD 150 million in the
global market.






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About Dong-A Pharmaceutical

Dong-A is Korea’s leading pharmaceutical company. Based on its corporate philosophy that the greatest value
is life, Dong-A strives to be a responsible corporate citizen that contributes to the health and welfare of
humankind. Over the past 42 years, Dong-A has maintained a reputation as a trustworthy producer of quality
pharmaceutical products, and has risen to become the number one drug company in Korea. It is expanding its
overseas presence on the strength of its new drug and biopharmaceutical products. Dong-A Socio Group
includes Dong-A Otsuka, a beverage company, and Yongma Logis, a 3PL specialized company, and other
subsidiaries.