Daewoong Ends Pitavastatin Supply Deal With Abbott
Daewoong Pharmaceutical has terminated a 72.8 billion won Pitavastatin supply contract with Abbott Products Operations AG, which covered four Southeast Asian markets.
Updated on Nov. 2, 2026 in Healthcare
Daewoong Pharmaceutical terminated its Pitavastatin Calcium Tablet supply contract with Abbott Products Operations AG, effective February 28, 2024, with a termination amount of 69.2271 billion Korean won. The mutually agreed termination was disclosed on November 2, 2026.
Why it matters
Daewoong cited poor local sales and difficulties maintaining domestic product approvals, since the product was neither manufactured nor sold in South Korea. The termination leaves the company with a fulfillment rate of only 4.91% against the original contract value.
The 10-year contract, signed in November 2016, was initially valued at 72.8 billion won and had yielded only 3.573 billion won by termination, a 4.91% fulfillment rate. The 69.2271 billion won termination amount is the difference between the original value and amounts received.
The players
Daewoong Pharmaceutical
A South Korean pharmaceutical company that supplied Pitavastatin Calcium Tablets under the contract and disclosed the termination.
Abbott Products Operations AG
The Abbott entity responsible for obtaining local product approvals, import and sales of the Pitavastatin tablets in the contracted Southeast Asian markets.
The details
The contract covered supply of Pitavastatin Calcium Tablet for sale in Thailand, Vietnam, the Philippines and Myanmar, with Abbott responsible for local approvals, import and sales while Daewoong supplied the product. Both parties mutually agreed to end the agreement.
Timeline
November 2016: Abbott and Daewoong sign the Pitavastatin supply contract.
February 28, 2024: The termination takes effect.
November 2, 2026: Daewoong publicly discloses the termination.
Market Landscape
The termination reflects how pharmaceutical licensing and supply deals for regional markets can underperform when local sales and regulatory approval maintenance fail to meet projections. Cross-border supply arrangements in Southeast Asia depend heavily on the local partner's ability to sustain approvals and sales.
For Daewoong shareholders, the termination signals a significant write-down relative to the original contract value. Companies relying on regional distribution partners should monitor local approval and sales performance closely.
The takeaway
Regional supply contracts depend on sustained local approvals and sales, and the gap between contract value and actual fulfillment can be large. Tracking fulfillment rates early can flag underperforming partnerships before termination.
Further reading
For more on the sector, see Healthcare coverage.
Source note: This article includes information reported by 조선일보.
