Yungjin Pharmaceutical Co., Ltd. signed a memorandum of understanding (MOU) on “Supplying Cefcapene Pivoxil Hydrocloride” with Itochu Chemical Frontier in Japan, on April 3^rd, 2008. Itochu, a contracting Company through MOU with Yungjin, is a leading trading company in Japan and will market Cefcapene in Japan. These two companies anticipate synergy effect by strengthening a strategic business relationship. 

The original developer of Cefcapene Pivoxil Hydrocloride which is a third generation cephalosporin antibiotic, has been sold as a finished product around 300 billion won every year. Cefcapene Pivoxil hydrochloride will be supplied to major Japanese pharmaceutical companies to launch a first generic product.

Ministry of Health, Labor, and Welfare’s strategic plan to increase generic drugs’ volume share of the prescription market to 30% by 2010, In accordance with this policy, Japanese generic companies expect sales increase, and exporting business of Yungjin is also to be likely. Yungjin has recently set up a new factory in Wanju, Korea to produce high quality products in bulk to achieve price competitiveness. Furthermore, Yungjin also searches for a market expansion opportunity to China and European countries besides Japan.