Daewong Pharmaceutical stated that it has signed an export contract for Covid-19 diagnostic kits worth approximately 12 billion won (10.1 million U.S. dollars) with Vietha Pharma, a Vietnamese pharmaceutical company.

The diagnostic kit that Daewoong will export to Vietnam is a product of CALTH, a South Korean company specializing in in vitro diagnostic medical devices. Daewoong signed a supply contract with CALTH in July.

CALTH's kit can determine Covid-19 infection within 15 minutes, and diagnose the presence of virus in smears collected from human nasopharynx by using immunochromatography with an accuracy of more than 95%.

"The diagnostic kit manufactured by CALTH and provided by Daewoong is an excellent product, recognized for its speed and accuracy," said Park Hyun-jin, head of Daewoong's global business unit. "Taking this export contract as an opportunity, we hope that the Vietnamese people can quickly and accurately receive the Covid-19 test and respond to the virus."

With more than 8,000 confirmed cases every day, the Vietnamese government announced that it will purchase 100 million test kits and supply them to the private sector by the end of 2021.

Daewoong plans to focus on government procurement by looking for local partners with advantages in open tendering and signing a contract with Vietha Pharma, estimated at 200 billion won per year.

The company expects to start local sales as early as this year and conduct active marketing activities, such as discussing online marketing strategies with partners and planning offline seminars.

Daewoong Pharmaceutical plans to gain a foothold in Vietnam and expand its diagnostic kit sales business throughout Southeast Asia.