"Merger of 3 Companies to Be Completed Within 4 Months if Financial Market Stabilizes"
Active Consideration of Acquisition and Merger... "Funds of 4 to 5 Trillion Available"
Seo Jung-jin, Chairman of Celltrion Group, is speaking at an online press conference held on the morning of the 29th. [Photo by Celltrion]
Seo Jung-jin, Chairman of the Celltrion Group, stated upon his return that "by 2030, we will increase the sales proportion of original new drugs to 40%, creating a company that leads in biosimilars while competing shoulder-to-shoulder with multinational companies in new drugs."
At an online press conference on the morning of the 29th, Chairman Seo presented his plans for the future after returning to the forefront of management, including the above statement. He highlighted key areas such as ▲new drug development ▲merger of the group’s three companies ▲digital healthcare ▲establishment of a direct sales network ▲and mergers and acquisitions (M&A).
Seo, who stepped down from frontline management in March 2021 to become honorary chairman, returned to the chairman position after being unanimously appointed as an inside director at the shareholders’ meetings of the Celltrion Group’s three companies?Celltrion, Celltrion Healthcare, and Celltrion Pharm?held the previous day. At the subsequent board meeting, Seo Jin-seok, the eldest son, was appointed co-chairman of Celltrion and Celltrion Pharm, while Seo Jun-seok, the second son, was appointed co-chairman of Celltrion Healthcare.
Regarding the reason for his return, Chairman Seo said, "The global economy is facing uncertain conditions, and I believe this uncertainty will not end this year but will continue into next year." When he stepped down from the frontline, he had stated that he would return as a 'firefighter' if there were rapid changes in the environment surrounding the group. As concerns grew over the worsening global economic situation and its potential negative impact on the group’s management, demands for his return increased, leading to his comeback to the frontline.
On new drug development, he explained, "We will primarily strengthen the pipeline and make changes to balance biosimilars and original new drugs," adding that next year they plan to initiate clinical trials for six bispecific antibody new drugs and ten anticancer new drugs. Regarding 'Remsima SC,' the most advanced new drug currently in development, he said, "It will be approved as a new drug in the U.S. by October," and "We expect to complete the pricing and reimbursement procedures within the year."
He also emphasized building a platform to advance as a full-fledged new drug development company. Chairman Seo stated, "We will secure a messenger ribonucleic acid (mRNA) platform by June this year," and added that they aim to secure platforms for bispecific antibodies and oral antibody drugs as well, with the goal of launching six products through these platforms starting next year.
He also conveyed that biosimilar development and approvals will continue steadily. By 2030, they plan to establish 21 pipelines and expect to receive approval or start sales for about six new products within this year.
Regarding the highly anticipated merger of the three companies, he said, "Preparations are almost complete," and explained, "The key factor is financial market stability." He added, "If the financial market stabilizes and it is deemed appropriate to proceed with the merger, we will present a milestone and complete the merger within four months." On digital healthcare, he mentioned that the ultimate goal is 'non-face-to-face medical treatment,' and that Chairman Seo Jin-seok has completed some basic research based on artificial intelligence (AI). He explained, "We will expand personnel in the future and establish a separate research institute within the merged company."
Regarding the establishment of a direct sales network, he said, "We have built direct sales networks worldwide, including in the U.S. and Canada," and explained, "We are preparing for Celltrion’s direct sales corporation in the U.S. to achieve sales exceeding 3 trillion won within two years, aiming for maximum effect." Based on this sales network, he also revealed plans to develop and sell quasi-drugs.
Chairman Seo repeatedly emphasized, "A crisis situation is one where opportunities coexist," and expressed his intention to actively pursue mergers and acquisitions (M&A) with financial resources of 4 to 5 trillion won raised through surplus cash and personal contributions. He said, "After the first half of this year, the number of companies of interest will be narrowed down to about ten," and "We expect to begin fund deployment from the third quarter."
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