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Significant Break Through in International Marketing

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Dragon Pharmaceuticals Inc. has recently signed licensing agreements with three overseas pharmaceutical companies, gaining the Company a foothold in both Latin America and Southeast Asia.

In August the company signed a license and distribution agreement with Duopharma (M) SDN BHD, of Malaysia, granting Duopharma rights to market the Company¡¦s flagship recombinant Erythropoietin for injection (epoetin-alfa) in the ASEAN member nations of Brunei, Myanmar, Thailand, Malaysia, Laos, Thailand, The Philippines, Vietnam, Cambodia, and Indonesia.

The Company has concluded negotiations that led to the signing of a license and distribution agreement with Itaca Laboratories, Ltd., of Brazil. The agreement gives Itaca the rights to market and distribute the Company¡¦s epoetin-alfa within the MERCOSUR economic pact member nations of Brazil, Argentina, Paraguay, Chile, Uruguay, and the Dominican Republic.

Both Duopharma and Itaca are regional pharmaceutical companies, with aggressive marketing and sales strategies and networks of clinical representation. These companies also carry product lines that compliment Dragon¡¦s EPO and drugs under development. The Latin American and Southeast Asian markets represent potential for Dragon, as the exorbitant cost of biotech medications has prevented the majority of patients from benefiting from Erythropoietin therapy.

The company has also successfully finished negotiations with Yoo & Yoo BioTech Co. Ltd., of South Korea, leading to an agreement for Yoo & Yoo to import, market, and distribute the Company¡¦s products in South and North Korea. Yoo & Yoo was founded by Dr. Tae-Aun Yoo two years ago, and is among the very first Korean company to focus solely on the formation of biotech business. Dr. Yoo has more than 20 years experience in the pharmaceutical industry, and formed Yoo & Yoo after leaving his post as head of regulatory affairs at Korea¡¦s Boryung Biopharma.

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