Handok Secures KRW 10 Billion Investment from Korea Investment’s Global Pharmaceutical Industry Development Fund

Handok Launches R&D Subsidiary,

Handok-Kalos Medical

– New subsidiary to be led by Park Eul-joon, head of research at Handok Medical Device.

– Handok-Kalos Medical to focus on the commercialization and global distribution of DENEX™, an EU-certified medical device for treating difficult cases of hypertension.

Handok (Chairman and CEO: Kim Young-jin) held an inauguration ceremony for Handok-Kalos Medical, the company’s R&D institute, on November 23, appointing Park Eul-joon, head of research at Handok Medical Device, as the new CEO of the subsidiary.

Handok-Kalos Medical, an independent company established for the research and development of medical devices, was made possible thanks to the KRW 10 billion investment secured by Handok from the Korea Investment Partners’ Global Pharmaceutical Industry Development Fund. According to the terms of the investment agreement, Handok holds 51 percent of the new company’s shares, while the Korea Investment Partners hold the other 49 percent. Handok-Kalos Medical’s primary goal will be to accelerate the development and global distribution of DENEX™, a renal-denervating device for the treatment of difficult cases of hypertension. CEO Park, head of the newly established subsidiary, has been developing medical devices at St. Jude’s Medical in the United States since 1994, and has been the head of the Handok Medical Device Research Lab since 2012.

Park commented on the name of the new medical institute saying, “The Greek word kalos has the connotation of ‘the true, the good, and the beautiful’. This word represents our aspirations to become an institution that helps ensure the healthy and fulfilling lives of patients by providing them with innovative products developed through collaboration between doctors and business leaders. The medical device industry is emerging as a new key to economic growth worldwide. It is our goal to launch innovative and practical products that will be recognized on a global scale.”

Handok has heavily focused on the research and development of DENEX™ since 2012. Clinical trials are currently in progress in Korea and Singapore, with significant backing from the governments of both countries. DENEX™ is not only easy to use, but is a high-precision device that is known for its safety. Handok has already been granted three patents in Korea for its denervating catheter design and has filed patent applications abroad.

Handok-Kalos Medical expects to obtain the European Union’s CE certification for the DENEX™ by 2016 and launch the product in the European market in 2017, followed by a later release in Korea in 2020. Handok’s expertise and experience in the respiratory device market will be instrumental in helping establish the DENEX™ brand in Korea and facilitate the licensing processes in Europe, China, and elsewhere. Handok-Kalos Medical has already received support from the Korean Ministry of Health and Welfare and the Korea Health Industry Development Institute for the development of DENEX II™ in cooperation with A*STAR, a public research institute in Singapore. In the future, Handok-Kalos Medical will continue conducting research to increase the applications of the DENEX™ to cardiovascular and other diseases.

Handok’s Chairman Kim Young-jin explained: “The launching of Handok-Kalos Medical will help Handok significantly expand its medical device business. Handok will continue to pursue its goal of creating innovative and practical products to become the world’s top provider of total healthcare solutions, investing in diverse fields with future growth potential.”

The world market for renal denervating systems is currently estimated to be about USD 6 to 7 billion. Medtronic, Boston Scientific, and other global medical device companies have already begun to research and develop a variety of renal denervating systems.