South Korea’s top pharmaceutical firm Yuhan Corp. has recently established a wholly owned subsidiary, named Yuhan USA, in San Diego.

Yuhan said the US subsidiary is tasked for searching new drug materials and companies worth investing in under its open innovation initiative. Yuhan will also set up a subsidiary in Boston during the second half of the year.

Yuhan shares closed Wednesday up 0.23 percent at 222,000 won ($207).

The global pharmaceutical market is estimated to be valued at $1.1 trillion as of 2016, of which the US makes up 40 percent or $433.5 billion. But foreign companies that want to enter the American market must meet rigorous standards from the US Food and Drug Administration (FDA). The establishment of Yuhan’s subsidiary in the U.S. can be a step to facilitate its access to the world’s largest pharmaceutical market.

Other Korean names readying to tap into the American market are Green Cross, Hanmi Pharm and Daewoong Pharm. Green Cross recently completed a blood plasma plant for its local subsidiary in Montreal, Canada in a bid to gain a foothold in North America. It marks the first time that a South Korean company has established a biopharmaceutical plant in the region.

Hanmi Pharm is prepping to file for FDA approval to sell a neutropenia treatment during the fourth quarter of this year, which it has jointly developed with its American partner Spectrum Pharmaceuticals.

Daewoong Pharm already submitted an application for FDA approval of its botulinum toxin treatment Nabota through its US distribution partner Alphaeon.

By Kim Hye-soon and Minu Kim

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