[2024 JPMHC] Celltrion "Holding Company IPO Within the Year... Establishing 100 Trillion Investment Fund"

Chairman Seo Jeong-jin and CEO Seo Jin-seok Attend JP Morgan Healthcare Conference
Announce 'Third Wave' Strategy Targeting 11 Trillion KRW Sales and 3.3 Trillion KRW Operating Profit

"Through the biosimilar business, we will enable more people to use good medicines at affordable prices. We welcome competition. Let everyone compete to lower prices further."

"We will become an anchor company and an investment company. As experts, we will invest and become the best partner for everyone in the bio industry, including patients and investors." (Seo Jung-jin, Chairman of Celltrion Group)

Celltrion has revealed plans to leap forward as a global new drug developer, expand its biosimilar portfolio, and establish a healthcare investment fund. Seo Jung-jin, Chairman of Celltrion Group, and Seo Jin-seok, CEO of Celltrion, announced this at the JP Morgan Healthcare Conference (JPMHC) held on the 10th (local time) in San Francisco, California, USA.

Seo Jin-seok, CEO of Celltrion, and Seo Jung-jin, Chairman of Celltrion Group (from left), are conducting a Q&A session at the JP Morgan Healthcare Conference (JPMHC) held on the 10th (local time) in San Francisco, California, USA.
[Photo by Celltrion]

The healthcare investment fund, targeting over 100 trillion won, will raise funds through the listing of Celltrion Holdings and overseas investment attraction. Chairman Seo said, "I will list the 98.5% stake I hold in Holdings as early as the end of this year," adding, "I intend to invest as an expert in promising young talents through the holding company as an investment firm." Regarding mergers and acquisitions (M&A), he drew a clear line, saying, "We will not do it." He emphasized, "Since people are the assets in the bio industry, it is important to enable them to work. We need to allow companies to grow professionally as they are and engage in businesses that combine strengths."

CEO Seo presented three targets for follow-up new drug development after Jimpendra: cancer, immune diseases, and metabolic diseases. In cancer, development will proceed for antibodies, antibody-drug conjugates (ADC), immune checkpoint inhibitors, and multi-antibody therapeutics, excluding chimeric antigen receptor (CAR)-T therapies, which have recently gained attention. For immune diseases, research is ongoing with Lani Therapeutics to improve dosing convenience by converting existing injectables into oral medications. Regarding metabolic diseases, which have recently attracted attention, he mentioned developing glucagon-like peptide (GLP)-1 class drugs for diabetes treatment and thyroid hormone receptor new drugs for metabolic abnormality steatohepatitis (MASH). Among these, ADCs, multi-antibodies, immune checkpoint inhibitors, and oral immune disease drugs are planned to start clinical trials by 2025.

CEO Seo appeared at an official event for the first time since his appointment as the CEO of the integrated Celltrion, launched at the end of last year. Alongside CEO Ki Woo-sung and former Celltrion Healthcare CEO Kim Hyung-gi, he oversees the management business division under a co-CEO system. Chairman Seo explained, "CEO Seo and I are co-chairmen of the board, and R&D is his specialty. What I am good at is selling drugs, and he handles research, so our roles are divided accordingly."

Seo Jin-seok, CEO of Celltrion, is giving a presentation at the JP Morgan Healthcare Conference (JPMHC) held on the 10th (local time) in San Francisco, California, USA.
[Photo by Celltrion]

Following CEO Seo's presentation, Chairman Seo took part in the Q&A session, stating, "Only 1 billion out of the 7 billion people worldwide have the economic power to use biopharmaceuticals, and 6 billion cannot afford the expensive medicines even if they are ill." He expressed a strong commitment to the biosimilar business, saying, "Pharmaceutical companies' goal is not to make money but to help humanity live healthily, so we will strive until no one dies due to lack of money."

Celltrion recently judged that the biosimilar market is becoming oligopolistic, seeing it as an opportunity to solidify its position as a leader. CEO Seo said, "Venture companies challenged biosimilars but are shifting their main strategy to new drug development due to higher-than-expected development costs and massive investments required for sales," adding, "Global big pharma companies also find it easier to increase profit margins by spinning off businesses, as seen with Viatris and Sandoz."

Seo Jung-jin, Chairman of Celltrion Group (left), is conducting a Q&A session at the JP Morgan Healthcare Conference (JPMHC) held on the 10th (local time) in San Francisco, California, USA.
[Photo by Celltrion]

Celltrion has announced a 'third wave' strategy aiming to secure a portfolio of 22 biosimilars by 2030. CEO Seo explained, "In addition to the already disclosed 'Stelara' and 'Prolia,' there are various blockbuster products," and added, "We pride ourselves on having the most solid portfolio among biosimilar specialist companies." He further stated, "The maximum expected sales per biosimilar is $500 million (about 660 billion won). When all 22 are launched, we expect sales of 11 trillion won and operating profit of 3.3 trillion won." This is an upward revision from the previously stated 7 trillion won biosimilar sales target for 2030.

CEO Seo also expressed intentions to enter digital healthcare. He explained, "We are building the Celltrion Healthcare Intelligence Bank," adding, "The optimal digital healthcare field for pharmaceutical companies is modeling that provides insights to patients and doctors and building databases for this purpose."