Pioneering New Areas with a Young Perspective
Also Promoting Major Business Structural Reforms
Kim Jeong-gyun, CEO of Boryung (top left clockwise), Yoo Won-sang, CEO of Yuyu Pharma, Heo Seung-beom, Chairman and CEO of Samil Pharmaceutical, Yoon Woong-seop, Vice Chairman and CEO of Ildong Pharmaceutical. Photo by each company.
[Asia Economy Reporter Lee Gwan-joo] Major domestic pharmaceutical companies are entering the era of "third-generation management," surpassing the second generation of founders, and unveiling changed management strategies. While the previous generation laid the foundation of the pharmaceutical companies, the third-generation managers are attracting attention for pioneering new business areas in their own unique styles based on a younger sensibility. Some pharmaceutical companies are beginning to reap substantial results as their management gains momentum.
Third-Generation Owners Searching for Future Items and Personally Doing Fieldwork
One of the pharmaceutical companies that experienced the biggest change this year is Boryung. In March, Boryung officially opened the era of third-generation management by appointing Kim Jeong-gyun (37), grandson of founder Kim Seung-ho, Honorary Chairman, as an inside director and CEO of Boryung Holdings. Along with Kim's appointment, the company changed its name from Boryung Pharmaceutical to Boryung. This reflected Kim's intention to expand the business scope beyond the pharmaceutical industry to the entire healthcare industry.
CEO Kim is focusing on discovering innovative new businesses by looking at future value. In particular, he has launched the "CIS (Care In Space)" project, which he has been preparing for over two years to pioneer the untapped field of "space healthcare." This is a strategic move to proactively respond to changes in human health conditions that may occur in the space age. This year, through the "CIS Challenge," aimed at discovering related startups, six teams were selected to receive $100,000 in investment funds and opportunities to participate in an accelerating program.
Yu Won-sang (48), CEO of Yuyu Pharmaceutical and grandson of the late founder Yu Teuk-han, is well known for personally conducting sales activities by attending overseas conferences and exhibitions, which is unusual for pharmaceutical company owners. In the second half of this year alone, CEO Yu visited the United States and Europe consecutively. Last month, to promote "YP-P10," a key pipeline drug under development for dry eye syndrome, he attended the American Academy of Ophthalmology (AAO), conducting interviews with local medical staff and ophthalmology specialized media. He then consecutively participated in "BioEurope" held in Leipzig, Germany, and "CPHI" held in Frankfurt, meeting with local clinical trial contract research organizations (CROs) and experts. Additionally, from the 18th to the 21st of this month, he attended the World Congress for Hair Research held in Melbourne, Australia, where he announced plans to conduct clinical trials for dutasteride tablets. The industry views the CEO’s direct involvement in promoting the company’s key pipelines positively.
Yoo Won-sang, CEO of Yuyu Pharma, is having a meeting at the BioEurope event. [Photo by Yuyu Pharma]
Third-Generation Managers Undertaking Corporate Restructuring
Yoon Woong-seop, Vice Chairman of Ildong Pharmaceutical, who officially began third-generation management last year after his promotion, continues his "steadfast" management style. Despite deteriorating profitability, the results of increased investment in research and development (R&D) for the future are gradually emerging. Ildong Pharmaceutical has increased its R&D expenses over several years. In particular, the ratio of R&D expenses to sales rose significantly from 14.0% in 2020 to 19.3% last year, and it remains at 19.4% through the third quarter of this year, showing the highest level in the pharmaceutical industry.
These efforts to expand R&D at Ildong Pharmaceutical are being recognized in the market. The COVID-19 treatment drug "Zokova," jointly developed with Japan's Shionogi Pharmaceutical, recently received emergency use authorization in Japan, and clinical studies on pipelines for non-alcoholic steatohepatitis (NASH) and diabetes are progressing smoothly. Vice Chairman Yoon’s vision to grow into an R&D-centered pharmaceutical company is gradually becoming a reality.
Park Hang-seo, head coach of the Vietnam national football team (from left), Oh Young-joo, Ambassador to Vietnam, Heo Seung-beom, Chairman of Samil Pharmaceutical, and Vu Thi Huong Mai, Vice Chairman of the Ho Chi Minh City People's Committee, are cutting the ribbon at the completion ceremony of the Samil Pharmaceutical Vietnam plant. [Photo by Samil Pharmaceutical]
Heo Seung-beom (41), Chairman of Samil Pharmaceutical and grandson of the late founder Heo Yong, is also considered a representative third-generation manager. After his father, Honorary Chairman Heo Kang, stepped down from frontline management last year, Chairman Heo has been focusing on reforming the business structure centered on generic drugs and domestic sales. This year, the balanced growth of all business divisions?including the ophthalmology division, central nervous system division, and contract manufacturing division?is attributed to Chairman Heo’s efforts to diversify the business. In particular, on the 18th, the company completed a global contract development and manufacturing organization (CDMO) plant for ophthalmic solutions in Vietnam and is accelerating the development of new areas by actively entering the global CDMO business.
An industry insider said, "The third-generation managers currently at the forefront of management have undergone long-term management training, so their management capabilities can be considered somewhat proven. It will be necessary to pay attention to how they lead their companies and which businesses they choose to strengthen in the future."
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