Daewoong Pharmaceutical aims to top $4 bn in sales by 2027

South Korea-based Daewoong Pharmaceutical Co. is hoping to achieve 5 trillion won ($4.4 billion) in sales by 2027, meaning that the company aims to grow fivefold in seven years given that it logged revenue of 1 trillion won in 2020. 

“The seeds that we planted a decade ago have begun bearing fruits,” said Jeon Seng-ho, the chief executive of Daewoong Pharmaceutical, in an interview with The Korea Economic Daily on August 3.

CEO Jeon’s confidence is backed by the trio of drugs developed by Daewoong Pharmaceutical such as the botulinum toxin product Nabota, the gastroesophageal reflux disease treatment Fexuprazan and the type 2 diabetes treatment, Enavogliflozin.

In the lead is the botox product Nabota which has been setting fresh export records every month.

“Nabota’s competitiveness is that its quality is similar to the world’s No. 1 botox maker Allergan's products, but it's about 20% cheaper,” said Jeon, adding that the company plans to tap into 80 countries that have granted sales licenses. By 2025, CEO Jeon expects Nabota’s sales to reach trillion won.

Backed by strong sales, the company hopes to hold around a 30% market share in the US by 2024. Next year, the company will also foray into China, the world's second-largest market.

The second drug that CEO Jeon has highlighted is the gastroesophageal reflux disease treatment Fexuprazan. It has been highly anticipated due to its outstanding effects, having already attracted overseas pharmaceutical companies that want to obtain sales licenses. 

Fexuprazan is a novel potassium-competitive acid blocker (P-CAB) which blocks the proton pump that secretes gastric acids from the stomach wall. It works faster and longer than the existing proton pump inhibitors (PPI). It is expected to receive approval in Fall.

"The PPI market that Fexuprazan can tap into reaches around 35 trillion won," said Jeon, adding that the company expects to see its overseas sales surpass domestic sales between 2025 and 2026 once the sales for Nabota and Fexuprazan take off.

The final puzzle to the company's 5 trillion won roadmap is the type 2 diabetes treatment Enavogliflozin, which can lower blood sugar more than the existing treatment as shown in the phase-2 trial. The drug is set to launch in 2023.

According to Jeon, Enavogliflozin is qualified to become the best-in-class drug based on the clinical trial results. He pointed out that the company expects to make a long-term profit from the drug given the high number of diabetes patients and the fact that they need to take it for a long period of time.

RICH PORTFOLIO OF DRUG CANDIDATES

In addition to the three new drugs, Daewoong Pharmaceutical has around 30 potential drug candidates in its portfolio including anticancer drugs and anti-obesity drugs, according to CEO Jeon.

Most of the drug candidates are expected to have high success rates. In particular, the company is currently in discussions with a global pharmaceutical company to export the technology for its autoimmune disorder treatment.

Also within the year, Daewoong Pharmaceutical plans to enter a global phase-2 clinical trial for its pulmonary fibrosis treatment in Korea and the US.

"We're also reviewing equity investments and joint development opportunities with around 50 bio venture companies at home and abroad," Jeon said, adding that attractive targets include companies developing anticancer drugs and autoimmune disorder treatments.

Write to Sang-hun Oh and Sun A Lee at ohyeah@hankyung.com
Danbee Lee edited this article.