Ogilvy buys stake in Korea's Pharmax

The deal, which is due to be completed in coming weeks, will see Pharmax founder and CEO Katherine Song maintain 30 per cent ownership of the company, as well as continuing in her role as chief executive along with the current management team.

Pharmax, which recently celebrated its 10th anniversary, offers local and MNC clients strategic planning, consulting, market research, market promotion, direct-to-patient communications and media education.

Ogilvy Healthworld Asia-Pacific president Graham Edwards said Korea, the world’s 10th-largest pharmaceutical market, was expected to continue growing at about five to 10 per cent annually.

“Clients are expecting coverage in all major markets, so it was essential that, as a business, we could cover them,” he said.

“Pharmax will bring a lot of talent to Ogilvy Healthworld, and it has some unique products and services that we can run out into our network.”

Edwards said the recent Government enforcement of the 2000 Separation of Dispensing and Prescribing Directive meant medical practitioners were recommending ‘evidence-based medicine’, rather than promoting generic products, which provided a higher revenue margin.

This, he added, has resulted in an increase in business for local and MNC companies which have invested in branded products and research.