JAN 12, 2010

– Will achieve KRW350 billion in sales, 19% YoY growth under slogan of ‘Great Handok, Do a right thing In a right way. Act together with fun!’

– Will launch new vaccines and hepatitis B treatment, renovate production facilities, reorganize R&D structure

Handok Pharmaceuticals Co. (CEO: Young-Jin Kim) announced it will achieve more than KRW350 billion in sales for 2010, a 19% increase from a year ago. The goal to be pursued under the slogan of ‘Great Handok, Do a right thing In a right way. Act together with fun!’ will be reached by implementing five actions; 1) diversification of product portfolio through the launch of vaccine and hepatitis B treatment drugs, 2) renovation of production facilities, 3) reorganization of R&D structure, 4) various social contribution programs and 5) continued investments in talent development and improvement in internal communications.

The slogan was devised for the purpose of sharing with young employees in the language spoken by them as about 70% of Handok Pharm. employees are in their early thirties. It means to work correctly in a fun working atmosphere to achieve the new goal.

Handok Pharmaceuticals said it has strengthened its product portfolio by adding new products this year. To begin with, it established a new unit ‘Guardian Franchise’ for domestic marketing and distribution of infant and adult vaccines from Sanofi Pasteur, the vaccines division of Sanofi-Aventis Group. Handok Pharmaceutical said it will raise its market share and reinforce a growth strategy by selling six products, including Tetraksim, Korea’s first combination vaccine for infants (for diphtheria, tetanus,  whooping cough, polio), Adacel, a combination vaccine for adults (for diphtheria whooping cough, tetanus) and ID Flu, a vaccine for seasonal influenza.

Product portfolio will also be diversified with the launches of hepatitis B treatment ‘Sevibo’, allergic rhinitis treatment ‘Omnaris’, wrinkle filler ‘Sculptra’ and Galvus Met, a combination drug of Galvus and Metformin.

Handok Pharmaceuticals will also firm up its position to provide a specialized diabetes care through ‘Amaryl’ family, ‘Galvus’ and blood glucose monitoring system ‘Barozen,’ which was debuted last year.

Handok Pharmaceuticals will also renovate manufacturing facilities in Eumsung, Chungbuk Province, by investing approximately KRW20 billion by the end of this year. This plan aims to counter steadily increasing demand while repositioning its plant as a production center with world-level facilities to manufacture cGMP pharmaceutical products.

Meanwhile, Handok Pharmaceuticals reorganized its structure to reinforce R&D capabilities. The central research institute under the control of Strategic Business, Research & Development has combined New Drug Research Center and Clinical Research Center into one, giving New Drug Research Center the power to control five research groups including Preparation Research Group, DDS Research Group and Bio Research group. Also, External Innovation Group was newly established in order to accelerate joint research efforts with outside partners. In addition, Medical Information Team, Medical Communications Team and Medical Research Team were integrated into Medical Business Division in a way to support scientific medical marketing of Commercial Division.

The R&D ratio will be around 8% of turnover in 2010 and 16 to 20 career employees will be hired.

Handok Pharmaceuticals also said it will continue a variety of social contribution programs to become a respected company in the industry.

Handok Pharmaceuticals plans to continue its education programs and activate internal communications to realize its vision of ‘becoming ‘a company preferred by top talents and satisfactory to employees.’

Handok Pharm’s values and vision will be shared by all employees through the internal education program ‘2010 Hi-Five.’ Also, executives and employees can promote self-development and skill-up through ‘Handok Innovation School,’ where a wide spectrum of education courses is provided.

Internal communications will be reinforced through a lunch program and a CEO meeting to allow direct communications with C-level directors, as well as ‘Handok Plaza’ where all employees gather together on a quarterly basis. An ‘anti-smoking campaign’ will also be launched to set a good example as a pharmaceutical company to put health first.