Biosimilar giant Celltrion to transform into drug developer

South Korean biosimilar giant Celltrion Group aims to transform into a drug developer by generating 40% of sales from new medicines by 2030 as it is scheduled to work on clinical trials for 10 candidates next year, said its founder Seo Jung-jin who returned to management two years after retirement.

Celltrion Inc. reported sales of 2.3 trillion won ($1.8 billion) last year, all from biosimilars, similar drugs to already-approved biologics, and biobetters, which are considered the better and improved versions of existing biologics.

“We aim to compete with multinational companies, not just remain a leader in the biosimilar sector,” Seo said on Wednesday in an online press conference. “We will primarily improve our new drug pipelines.”

Seo was on Tuesday elected as co-chairman of the board of directors for each of the group’s three listed affiliates: Celltrion, Celltrion Healthcare Co. and Celltrion Pharm Inc.

Celltrion plans to conduct clinical trials for 10 candidates of new drugs – six bispecific antibody remedies and four anticancer medicines in 2024.

“We will develop some of them for ourselves and jointly research others with multinational companies to reduce development risks,” Seo said. “We may cooperate with them in phase 1 or phase 2 trials in the form of out-licensing.”

ACQUISITIONS FOR PLATFORMS

Seo emphasized the importance of platforms in becoming a drug developer, saying Celltrion will focus on platform companies for acquisitions.

“To transform into a drug developer, platforms are the most important,” he said.

“We are paying attention to companies that have platforms we don't have and if we can develop new drugs with the platforms. We already have many pipelines, so we are looking for companies with platforms we should adopt.”

The company is seeking acquisitions in overseas markets, especially the US and Europe, for global expansion, he said.

“We will make a short list of about 10 companies for acquisition in the first half. We expect to start the implementation of funds from the third or fourth quarter.”

Celltrion is considering spending up to 5 trillion won raised with cash, cash equivalents and Seo’s own stocks for acquisitions while mulling cooperation with investors including those from Wall Street if needed, Seo said.

Regarding the merger of the group’s three affiliates – Celltrion, Celltrion Healthcare and Celltrion Pharm – Seo hopes to combine them, a key task to reform the group’s corporate governance, as soon as possible.

“We will quickly merge them within four months after the merger milestone is presented. We expect the process to be completed this year, if possible.”

Currently, Celltrion develops biosimilars, while Celltrion Pharm sells them in South Korea and Celltrion Healthcare handles their overseas sales.

BANDAGES, MASKS

Celltrion plans to start a global business for personal healthcare and medical items including bandages, masks, gauze and others intended to be used for treating, reducing or preventing diseases in humans and animals, Seo said.

“We have established direct sales networks in global markets such as the US and Canada. That means we can sell those products,” he said. “Celltrion’s brand power is not as weak as those of other foreign drugmakers and that is expected to maximize sales.”

COVID-19 prompted hospitals to use disposable scrubs, which created a market of more than 3 trillion won in the US and Europe, he said.

“We aim to create synergy through direct sales networks and expand the business to as many multinational companies as companies such as Johnson & Johnson do.”

Write to Jeong Min Nam at peux@hankyung.com
 
Jongwoo Cheon edited this article.