SK Biopharm Announces Creation of 152.1 Billion KRW in 'Social Value' Last Year

[Asia Economy Reporter Chunhee Lee] SK Biopharm announced on the 25th that it created social value (SV) worth 152.1 billion KRW last year.

As part of ESG (Environmental, Social, and Governance) management, major SK affiliates have been establishing and implementing SV strategies annually since 2019 and quantifying the value contributed to the economy and society.

Specifically, SK Biopharm recorded a total SV of 152.1 billion KRW last year, including ▲111 billion KRW in the ‘social’ domain covering quality of life improvement through new drug development, social contribution, and partner company co-growth ▲41.3 billion KRW in ‘economic indirect contribution’ from tax payments and employment ▲and -160 million KRW in the ‘environment’ domain related to greenhouse gas emissions, waste discharge, and water pollution.

More than 70% of the SV was generated in the ‘social’ domain. Notably, the innovative epilepsy drug ‘Cenobamate’ achieved results worth 109 billion KRW in the U.S. The contribution of Cenobamate was measured by applying factors such as reduced medical expenses for patients, increased productivity due to improved labor capacity of patients and caregivers, and improved daily living standards of patients.

With the easing of COVID-19 restrictions leading to reopening (resumption of economic activities) and global market expansion, patient accessibility is expected to increase, so the SV created by Cenobamate is projected to grow further. Currently, the U.S. market is seeing rapid increases in sales and prescriptions as face-to-face sales activities become active, and Europe is expanding the countries of launch through partner companies. SK Biopharm is accelerating Phase 3 clinical trials aiming for an Asian launch (Korea, China, Japan) by 2025 and is also pursuing technology exports (licensing out) to various regions such as South America and Australia.

The environmental domain showed a somewhat insufficient performance with -160 million KRW. However, the company explained, “Since we do not own production facilities or office buildings, the impact of climate change is estimated to be lower compared to peer companies.” SK Biopharm recently obtained the international standard for environmental management systems, 'ISO 14001,' and has been promoting activities to overcome the climate change crisis, including declaring the achievement of ‘Net Zero’ carbon emissions by 2040.

Jungwoo Cho, CEO of SK Biopharm, said, “SK Biopharm is focusing on restoring the daily lives and enhancing the value of life for patients and caregivers through innovative new drugs,” adding, “We will continue to expand our innovative drug portfolio through in-house development and various open innovation strategies and strive to increase social value.”