Dong-A Pharmaceutical Co Ltd (000640 KS) Exports Zydena, Its Erectile Dysfunction Drug, to Russia



    SEOUL, SOUTH KOREA, October 16 /CNW/ - Dong-A Pharmaceutical Co Ltd:

    --  CONTRACT WITH OTECHESTVENNYE LEKARSTVA OJSC CALLS FOR MINIMUM EXPORTS
OF US$50 MILLION OVER 5 YEARS

    --  FOLLOWS US$30 MILLION CONTRACT WITH SAUDI ARABIAN DRUG COMPANY, STP

    --  OTECHESVENNYE JSC COMMITS TO AGGRESSIVE MARKETING PROGRAM TO SUPPORT
ZYDENA AS A BLOCKBUSTER DRUG

    Dong-A Pharmaceutical Co Ltd (000640 KS) announced that its subsidiary,
Dong-A Pharm-tech, entered into a five-year, US$50 Million contract with
Otechestvennye Lekarstva OJSC to market Zydena, Dong-A's erectile dysfunction
drug, in Russia.

    Under the terms of the agreement, signed on October 15, 2007,
Otechestvennye Lekarstva OJSC, one of the largest Russian pharmaceutical
firms, will pay both upfront fees and running royalty on sales for the life of
the contract.

    Considering the potential of Zydena, expectations are that revenue could
reach US$100Million.

    This agreement represents the second significant licensing arrangement
for Dong-A, surpassing the contract signed last October with SCP Corp. (Saudi
Arabia) for marketing Zydena in Gulf Cooperation Council territories.
Expansion into Russia, the leading pharmaceutical market in Eastern Europe,
and the Middle East represents a significant milestone in Dong-A's Strategic
Plan to turn the company, Korea's largest pharmaceutical company, into a world
class, R&D driven drug company.

    Zydena is distinguished by its long duration of action and low incidence
of unfavorable side effects such as vision disturbances and muscle pain. Due
to Zydena's excellent efficacy and safety profile, Otechestvennye Lekarstva
OJSC will make a significant investment in marketing and promotion to Russian
physicians.

    Dong-A expects that sales of Zydena in Korea will represent in excess of
20% of the erectile dysfunction drug market there in 2007, its second year on
the market.

    Mr. Dong Hyun Park, President of Dong-A Pharm-tech, stated that "We are
extremely pleased to have Otechestvennye as our partner in Russia. This deal
positions Zydena for solid sales in the rapidly evolving pharmaceutical market
in Eastern Europe and furthers our strategy for marketing Zydena in numerous
key countries in Asia and South America in advance of our entry into North
America and the European Union. Based on success in the Russian market, we may
accelerate our expansion into bigger markets such as the U.S., Europe and
Japan by 2009, when we expect the FDA Clinical Phase III Studies to be
completed."

    Zydena has a strong intellectual property position with patents in more
than 30 countries. Dong-A Pharm-tech successfully completed its Phase II
clinical studies in the U.S. for the drug and will proceed to completing all
clinical studies required for filing a New Drug Application in the U.S. and
Europe.

    Dong-A Pharm-tech expects to increase global marketability of Zydena by
developing the product for use in new indications such as pulmonary arterial
hypertension and benign prostatic hyperplasia, given its favorable half-life
and once-a-day duration.

    About Otechestvennye Lekarstva OJSC

    Otechestvennye Lekarstva OJSC is one of the largest Russian
pharmaceutical companies with recent turnover of US$150 million. The company
has 5,000 employees and markets over 200 products in Russia and in 20 other
countries.

    Otechestvennye Lekarstva OJSC was selected as the best pharmaceutical
company in Russia in 2005 and 2006 by the Russian government.

    About Dong-A Pharm-tech Co., Ltd.

    Dong-A Pharm-tech is a late-stage pharmaceutical company incorporated in
Korea, focused on the development and commercialization of udenafil and a
number of other drug candidates worldwide outside Korea.

    Statements under the Private Securities Litigation Reform Act: with the
exception of the historical information contained in this release, the matters
described herein contain forward-looking statements that involve risk and
uncertainties that may individually or mutually impact the matters herein
described, including but not limited to FDA review and approval, product
development and acceptance, manufacturing, competition, and/or other factors,
which are outside the control of the Company.




For further information:

For further information: Dong-A Pharmaceutical Co Ltd Mr. Ki-Ho Chang,
+82 2 920 8361 General Manager Head of International Business Division Fax:
+82 2 924 2662 Email: ckh@donga.co.kr.

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DONG-A PHARMACEUTICAL CO., LTD

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