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The South Korean Market For Arena's Belviq May Be Larger Than Expected

Arena Pharmaceutical's (ARNA) obesity drug, Belviq, was approved on February 2, 2015 by South Korea's MFDS, the Ministry of Food and Drug Safety. Arena's partner for South Korea is Ildong Pharmaceuticals and this approval creates a milestone payment of 3 million dollars with Ildong paying a percent of net sales starting at 35% and reaching as high as 45% upon achieving annual sales of 15 million.

Upon this approval, the first outside of the United States, many started to do some quick research into how obesity affects this country of about 51 million. Clearly South Korea will represent a much smaller market than the United States by virtue of its population being roughly one-sixth the size. But another factor in determining the size of the South Korean market is the size of their obesity problem. That is where things get a bit interesting.

If we look at the 51 million… Read More …