Pharmaceutical giant Novartis to invest US$100 mln in S. Korea

SEOUL, Oct. 9 (Yonhap) -- Global pharmaceutical giant Novartis said Friday that
it will invest US$100 million in South Korea over the next five years to bolster
research activities aimed at developing new drugs while increasing cooperation in
the domestic bio industry.

Under a preliminary deal signed between South Korea's health ministry and the
Swiss-based multinational pharmaceutical company, Novartis also promised to
provide necessary financial and technical support for local start-up drug makers
in the bioscience sector.
"Korea has clear strengths in its excellent medical infrastructure, its
world-class researchers and medical professionals, showing high expertise and
passion to advance medical sciences in Korea. It is also encouraging that in
recent years we see there's an increasing interest in the bio-medical R&D arena
ranging from drug discovery to development," Peter Jager, president of Novartis
Korea, said in a statement.
"With signing this memorandum of understanding with Korea's health ministry,
Novartis aims to leverage its global network to step up its contributions to
advancing clinical research excellence and supporting biomedical sciences in
Korea," he added.
Of the investment to be made until 2013, Novartis said that it will set aside $20
million through a venture fund it has been operating since 1996 to provide
financial support and technical counseling for local small-sized bio companies
with innovative ideas, the ministry said.
Established in 1886, Novartis is the world's third largest drug maker in terms of
sales. It spent $7.2 billion or 17 percent of its annual sales on R&D in 2008,
according to the health ministry.
The large-sized investment deal reflects the growing attention being paid to
South Korea, which is fast emerging as an attractive market for global drug
makers amid increased demand for health care bolstered by fast-aging populations
and enhanced living standards.
The deal with Novartis comes just a month after Otsuka Pharmaceutical, one of
Japan's leading drug companies, said that it will invest around 100 billion won
($81.5 million) here over the next five years in a similar R&D deal.
Earlier, AstraZeneca, a Britain-based multinational pharmaceutical company,
agreed to invest 50 billion won in South Korea, while U.S. drug maker Pfizer also
announced it would spend 300 billion won here until 2012 for R&D purposes.
"We expect that the investment deal with Novartis will bolster bilateral
cooperation and enhance our capacity for developing new drugs, while brining the
level of our pharmaceutical industry one notch higher," the ministry said in a
statement.
kokobj@yna.co.kr
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