Rafarma Pharmaceuticals is pleased to announce the signing of a preliminary agreement to establish a joint industrial venture in Busan Technology Park (South Korea) as the Dongnam Industrial Park of Radiological & Medical Sciences. The partners in the venture are Rafarma and the Korean pharmaceutical company Woods Medical Care.

Woods Medical Care, Inc. was established to grow into a global pharmaceutical company producing radiopharmaceuticals by collaborating with Korea Atomic Energy Research Institute.

One of the priorities of the scientific and medical company Rafarma is the promotion of nuclear medicine as a high-tech method of cancer treatment. Nuclear medicine includes brachytherapy with embolization of inoperable metastases of prostate cancer and hepatocellular liver cancer and liver metastases as common complications of cancer.

We previously announced the creation of a similar facility in Hong Kong, but after much consideration, Korea was identified as a more attractive market for investment in the field of radiopharmacology and nuclear medicine.

The main goal of the joint venture is to organize and run a business for the production and sale of medical products based on the isotope “Yttrium-90” (“Y90”), as well as boron and lithium capture therapy units.

International cooperation between companies includes:

1) Release of packaging of microsphere-based products for the East Asian markets and their promotion for the treatment of cancer;

2) Bench assembly of medical accelerators for lithium-capture therapy for cancer treatment;

3) Promotion of lithium capture technology in East Asia as a service to hospitals to promote this therapy for cancer treatment;

4) Organization of production and construction in the Busan Technopark of a plant for the production of microsources for brachytherapy based on iodine isotopes for treatment.

The potential revenue of the created enterprise can reach $50 million in the first 5 years, and the potential profit exceed $20 million in 4 years. The parties estimate the required investment in the project to be about $30 million.