International Strategies for Tropical Disease Treatments - Experiences with Praziquantel - EDM Research Series No. 026
(1998; 113 pages) View the PDF document
Table of Contents
View the documentAbstract
View the documentAcknowledgments
View the documentInformation on authors
View the documentExchange rates used in the report
Open this folder and view contentsChapter 1: Policies for praziquantel*
Open this folder and view contentsChapter 2: Bayer & E. Merck: Discovery and development of praziquantel*
Close this folderChapter 3: Shin Poong Pharmaceutical Co.: Process development in the Republic of Korea*
View the documentShin Poong Pharmaceutical Company Ltd.
View the documentShin Poong’s involvement in praziquantel production
View the documentProduction, domestic sales, and export of praziquantel products
View the documentPraziquantel market in the Republic of Korea
View the documentPrice changes of praziquantel in the Republic of Korea
View the documentReferences
Open this folder and view contentsChapter 4: The Egyptian International Pharmaceutical Industries Co.: Praziquantel formulation*
Open this folder and view contentsChapter 5: The international supply of praziquantel*
Open this folder and view contentsChapter 6: Demand for praziquantel and national distribution*
Open this folder and view contentsChapter 7: Prices and production costs of praziquantel*
View the documentOther documents in the DAP Research Series
View the documentDAP Research Series No. 26
 

Shin Poong Pharmaceutical Company Ltd.

The Shin Poong Pharmaceutical Company was established in 1962. The company has been producing various kinds of pharmaceuticals and doing research and development for more than 31 years. In 1975, Shin Poong synthesized the raw material for mebendazole, a broad-spectrum anthelminthic agent. This product marked the first time that Shin Poong produced a pharmaceutical item using self-developed technology.

In 1983, Shin Poong successfully synthesized praziquantel, the raw material for the treatment of liver and lung flukes and schistosome species. Praziquantel was designated as a “Protected Medicine” by the Ministry of Health and Social Affairs in the same year. In 1987, Shin Poong was designated as a producer approved for KGMP (Korea Good Manufacturing Practice), a government regulation to enforce high standards in pharmaceutical manufacturing.

In March 1988, Shin Poong established a joint venture company, GMC, in Sudan. GMC of Sudan is producing finished products with imported raw materials, where Shin Poong is the major supplier of raw materials. GMC began production of praziquantel products in November 1994, with plans to export the product in the near future to the African market.

In 1994, Shin Poong had about 500 employees, with total assets estimated at US$ 27 million (as of December 1994). It produced 150 items of finished pharmaceutical products, 24 items of pharmaceutical raw products, 10 items of Korean Ginseng products, and 5 items of veterinary medicine.

In 1993, Shin Poong ranked 22nd in production value among the Republic of Korea’s more than 200 pharmaceutical companies. As shown in Table 3.1, its rank has varied over the years, but the company has consistently ranked within the 30 largest pharmaceutical companies in the country.

Table 3.1: Shin Poong’s rank in total production among all Korean pharmaceutical companies

unit: million won


1987

1990

1993

Production value

19,843
(24,498)

49,480
(61,086)

65,821
(81,260)

Rank

28th

18th

22nd

Note: Numbers in parenthesis are values in one thousand US dollars
Source: Korean Pharmaceutical Manufacturers’ Association, Annual Statistics of Production, various years.

Shin Poong is also rated high in R&D investment among all Korean pharmaceutical firms. As shown in Table 3.2, the average annual rate of R&D investment to total production value ranges from 2.9 percent to 3.3 percent, from 1988 to 1993 among the 100 largest pharmaceutical companies in the Republic of Korea. The rate for Shin Poong in 1993 was 4.06 percent, higher than the average of the top 100 firms. Table 3.3 shows that Shin Poong is ranked 15th in R&D investment, compared to its 23rd rank in production value. A recently released report (Shin Poong’s internal report on 1994 Management Strategy) reveals that Shin Poong seeks to raise the level of R&D investment to 6 percent of total production value, estimated to be 3,600 million won, which would double the amount of its 1993 R&D investment. Whether this level of R&D investment will be achieved has yet to be confirmed.

Table 3.2: Total R&D Investment by 100 largest pharmaceutical companies in the Republic of Korea

unit: 1 million won

Year

Sales value (A)

R&D investment (B)

B/A*100
(percent)

1988

1,439,632

41,386

2.87

1989

1,658,741

54,430

3.23

1990

1,933,254

63,499

3.28

1991

2,484,277

82,909

3.34

1992

2,906,292

91,233

3.14

1993

3,241,937

104,909

3.24

Source: Ilgan-bosa, “Insufficient R&D Investment by Pharmaceutical Firms,” June 1, 1994.
Note: Sales value = sales volume * wholesale price.

Table 3.3: R&D Investment by Shin Poong Pharmaceutical Company: 1993

unit: million won, percent

Sales

R&D

Value
(A)

Rank

Value
(B)

B/A*100
(percent)

Rank

44,362

23rd

1,800

4.06

15th

Source: Ilgan-bosa, “Insufficient R&D investment by pharmaceutical firms,” June 1, 1994.
Note: Sales value = sales volume * wholesale price.

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