April 25, 2024

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[THE INVESTOR] Korea’s Dong-A ST said on Aug. 23 it has reached a technology transfer agreement for its four therapies with Iran’s pharmaceutical firm Rooyan Darou, seeking to gain access to the potentially lucrative Middle East market.

“The partnership is a stepping-stone for us to expand our presence in the Middle East,” a Dong-A ST official said.
 

Under the agreement, Dong-A ST will immediately share its production technology of two therapies -- growth hormone injection Growtropin and leukopenia therapy Leucostim -- with the Tehran-based company. Rooyan Darou will also be granted a license to make and sell the Korean firm’s infertility drug Gonadopin and anemia treatment Eporon, subsequently.

The Korean firm said it will receive royalties from Rooyan Darou from sales of the four medications after the Iranian partner begins selling the products from 2019. Terms of the deal have not been disclosed.

With sanctions on Iran by the West being lifted last year, the Korean company is betting on the future of Iran’s pharma market. The Iranian government plans to localize the production of biopharmaceuticals for the next five years and increase the proportion of domestic production to 75 percent, according to the Korean firm.

Iran’s pharma market is expected to grow by 6.4 percent annually to reach US$3.59 billion by 2025.

By Park Han-na (hnpark@heralcorp.com)