Gangwon to Promote Supply of COVID-19 Test Kits with China's Sinopharm

[Asia Economy Reporter Eunmo Koo] Gangwon is launching its entry into the Chinese market for novel coronavirus (COVID-19) diagnostic kits in partnership with China’s largest pharmaceutical group.

On the 20th, Gangwon announced that it is in discussions with Sinopharm SD (Sinopharm Group Shandong), a subsidiary of Sinopharm (China National Pharmaceutical Group), China’s largest state-owned pharmaceutical enterprise, regarding the supply of COVID-19 diagnostic kits to China. The company plans to formalize supply after detailed discussions in the near future.

On the 26th of last month, Gangwon signed a “Strategic Cooperation Agreement” with Sinopharm SD, agreeing to pursue close cooperation in fields including bio-life sciences, genetic diagnostics, and import/export of pharmaceuticals and medical devices. The China Food and Drug Administration (CFDA) sales approval and other necessary permits for the Chinese market supply will be handled by Sinopharm, a specialized pharmaceutical distribution company.

Sinopharm is a state-owned enterprise directly under the State-owned Assets Supervision and Administration Commission of the State Council (SASAC). Founded in 1919 as a government-affiliated pharmaceutical company, it operates in bio, new drug research and development, pharmaceutical manufacturing, medical device distribution, pharmaceuticals, and healthcare. It owns six listed companies in Hong Kong, Shanghai, Shenzhen, and other locations, as well as over 1,400 subsidiaries and affiliates. It has a supply network including about 10,000 hospitals, 80,000 health centers and clinics, and 60,000 pharmacies, recording sales of approximately KRW 90.7 trillion as of last year.

Sinopharm SD is a distribution platform subsidiary of Sinopharm Holdings, owning about 40 corporations. Since its establishment in 2009, it has been engaged in direct and indirect distribution of pharmaceuticals, medical devices, and other medical supplies to hospitals, pharmacies, and various medical sites. It has built a solid network centered in Shandong Province and recorded sales of KRW 1.9 trillion in 2018 through strategic business models and distribution methods such as “hospital + pharmacy combination” and “retail + logistics + medical treatment combination.”

Gangwon plans to expand its entry into China’s bio platform business, which is a new business initiative, starting with the distribution of COVID-19 diagnostic kits through Sinopharm SD. Recently, Gangwon expressed its intention to globally supply the rapid diagnostic kit “iLAMP Novel-CoV19 Detection Kit,” which can diagnose COVID-19 infection within 20 minutes. The company plans to prioritize markets in China, the Philippines, Thailand, and other Southeast Asian countries and is preparing applications for relevant permits in each country.

A company official stated, “Based on our experience and network in overseas business targeting the global market, we plan to focus on the bio platform business. In addition to the iLAMP Novel-CoV19 Detection Kit, we have completed vendor registration for products certified in Korea, the U.S., and Europe developed by domestic diagnostic kit manufacturers, and we will accelerate our entry into overseas markets focusing on competitive products.”

This content was produced with the assistance of AI translation services.