Celltrion considers listing holding firm after merger of 3 units

South Korean drug giant Celltrion Group will consider listing its holding company if necessary, after it completes the merger of three affiliates – biopharmaceutical developer Celltrion Inc., overseas sales and marketing firm Celltrion Healthcare Co. and domestic distribution unit Celltrion Pharm Inc., group founder and Chairman Seo Jung-jin said at an investor relations meeting on Thursday.

Seo, who owns 98.1% of Celltrion Holdings Co., added he will buy more shares in the holding firm if the company goes public and the stock price rises. He doesn't plan to sell off a shares in the holding firm or biopharmaceuticals maker Celltrion, Seo added.

The holding company owns Celltrion and Celltrion Healthcare with 20.1% and 24.3% stakes, respectively. Celltrion has a 54.8% stake in Celltrion Pharm.

The group announced on Aug. 17 that Celltrion will finalize the merger with Celltrion Healthcare by the end of this year, and around six months from then, the integrated entity will complete another merger with Celltrion Pharm.   

Celltrion Group aims to enhance its business transparency through the mergers, Seo said at the time. The three affiliates were fined a combined 13 billion won ($9.8 million) by the Financial Services Commission (FSC) in March 2022 after a four-year investigation into accounting fraud and intra-group transactions.

OVERSEAS SALES UP

The group, which aims for 12 trillion won in new drug and biosimilar revenue by 2030, is focusing on boosting its global sales.

“We strengthened direct sales networks in its major markets like the US, Canada and Australia this year. We will visit Japan on Aug. 27 and fly to Singapore, Hong Kong and the US next month for investor relations events,” Seo said.

The group is accelerating its biosimilar marketing in Canada. “Canada’s biosimilar market is forecast to surpass 1 trillion won within five years. Around 1,800 doctors in the county are estimated to prescribe our biosimilars – we will meet 20 clients a day during the business trip to help them better understand our products,” Seo added.  

This is increasing sales of Yuflyma, its biosimilar in the US referencing AbbVie Inc.’s blockbuster drug Humira.

Yuflyma is a treatment for autoimmune illnesses like rheumatoid arthritis and Crohn’s disease. It received US Food and Drug Administration marketing approval in May and has been recently put on a list of Optum Rx, a major pharmacy benefit manager (PBM) for health insurance coverage. Celltrion is in talks with another PBM to boost Yuflyma sales, Seo said.

 
Write to Jeong Min Nam at peux@hankyung.com


Jihyun Kim edited this article.