CJ Healthcare and Chong Kun Dang to conduct joint sales venture
22. JAN. 2019
CJ Healthcare and Chong Kun Dang to conduct joint sales venture for new generation gastro esophageal reflux disease treatment,
K-CAB.
- CJ Healthcare and Chong Kun Dang sign domestic joint sales venture agreement for K-CAB
- K-CAB approved by MFDS last July as Korea’s 30th home grown novel drug, a P-CAB type gastro esophageal reflux disease treatment.
- CJ Healthcare and Chong Kun Dang to conduct sales and marketing to all domestic health facilities including all hospitals and clinics.
On January 22nd at the Plaza Hotel Seoul, CJ Healthcare’s CEO, Seok-Hee Kang announced that CJ Healthcare and Chong Kun Dang held a joint sales venture agreement ceremony for its novel drug K-CAB, a new gastro esophageal reflux disease treatment drug.
Under this agreement, CJ Healthcare and Chong Kun Dang will together, conduct sales and marketing activities to all health facilities including all hospitals and medical clinics.
CJ Healthcare’s gastro esophageal reflux disease treatment drug K-CAB is a novel drug with a new mechanism of action(P-CAB), gaining approval by the MFDS last July. K-CAB is currently in the process of setting its selling price.
Human clinical trials demonstrated that K-CAB was effective in the inhibition of gastric acid secretion within 1 hour of consumption on the 1st day. It also demonstrated effective nighttime acid control which will hopefully lead to mitigated chest pains and insomnia caused by gastro esophageal reflux disease.
Due to no designation of optimal consumption period, K-Cab is convenient in consumption and has shown minimal deviation in effectiveness among different individuals.
CJ Healthcare CEO Seok-Hee Kang quoted, "K-CAB tablets, which is characterized by quick drug efficacy and nighttime inhibition of gastric acid secretion, can quickly change the prescription trend of the gastroesophageal reflux disease treatment market,” and added that "We are pleased to cooperate with Chong Kun Dang team in carrying out a joint sales venture. We hope that the solid partnership of the two companies can generate synergy and speed up the success of K-CAB."
Chong Kun Dang’s CEO Young Joo Kim quoted "Chong Kun Dang has steadily increased its share of the gastroesophageal reflux disease drug market through various products. The innovation and product quality of the K-CAB combined with CJ Healthcare’s and Jong Kun Dang’s sales and marketing infrastructure will enable the two companies to lead the gastroesophageal reflux disease treatment market.
The number of patients with gastroesophageal reflux disease in Korea has increase by an average of 11% for the past 5 years. In addition, the gastroesophageal reflux disease treatment market is estimated to be about 470 billion KRW (2017 Health Insurance Review and Assessment Service), with PPI products primarily being prescribed.
K-CAB Tab. 50 mg was approved in July for the first time as the world’s first P-CAB-based drug for both ERD(erosive gastroesophageal reflux disease) and NERD(non-erosive gastroesophageal reflux disease), which are major indicators for existing gastric acid suppressants.
In 2015, CJ Healthcare entered the Chinese market by exporting technology valued around 100 billion won to Luoxin of China, a powerhouse in digestive system drugs. Last year, the company signed a technology export agreement with Vimedimex Medi Pharma in Vietnam.