Chairman Kim Jwajin "First Generic Production, Stable Production and Supply Crucial" Self-assessment
Annual Production System of 1 Billion Tablets... "Achieving 1 Trillion Won Sales by 2030 through Additional M&A and New Drug Development"
"I will always strive to be a manager who considers ways to satisfy shareholders, employees, and consumers alike."
Kim Jwajin, chairman of Mothers Pharm, who has grown the pharmaceutical company to the point of aiming for 200 billion KRW in sales just 14 years after its establishment, revealed his management philosophy by stating, "Once the designated audit for the initial public offering (IPO) is completed around March next year, I believe the remaining procedures will allow us to list on the stock market around September to October next year."
On the 9th, during an on-site tour of the "Management Innovation Excellent Companies" recommended by the Korea Management Innovation Small and Medium Business Association (MainBiz Association), Kim, whom we met at Mothers Pharm headquarters in Dongjak-gu, Seoul, said, "The exemplary business model for Mothers Pharm is Hanmi Pharmaceutical," adding, "Initially, we had no choice but to focus on generics, but now we are shifting our focus to improved new drugs. Going forward, we will transform into a pharmaceutical company that develops and manufactures innovative new drugs."
Kim Jwajin, CEO (Chairman) of Mothers Pharm, is explaining the drug research and development process at the Mothers Pharm R&D Center located in Gasan Digital Complex, Guro-gu, Seoul. Provided by MainBiz Association
"The exemplary business model is Hanmi Pharmaceutical"
Mothers Pharm, which has selected NH Investment & Securities and KB Securities as lead underwriters and is preparing for the KOSDAQ listing review, is pursuing a listing based on performance rather than a technology listing.
After founding the pharmaceutical distribution company Mothers Pharm in 1999, Kim acquired Anam Pharmaceutical located in Gyeongsan, Gyeongbuk Province in 2011, changed the company name to Mothers Pharm, and began research and development. The company made its name known in the market by independently developing and launching the gastritis treatment drug "Lacetin M tablets" in 2014, the peptic ulcer treatment drug "Sto M tablets" in 2015, and the osteoarthritis pain and anti-inflammatory drug "Raybone tablets" in 2017.
The Teneglip tablets and Teneglip M extended-release tablets series, launched in 2022, rank first in the generic market for DPP-4 inhibitor class diabetes treatments, and the Rosuemjet tablets series for hyperlipidemia, launched in 2021, achieved sales of approximately 14 billion KRW this year.
The solid relationship built between Mothers Pharm and contract sales organizations (CSOs) has also contributed to increased sales. The number of prescriptions has significantly increased, and according to the prescription amount rankings by the pharmaceutical information provider Ubist, the company has jumped into the top 30 among all pharmaceutical companies.
Annual average growth of 32.3%... Approaching 200 billion KRW in year-end sales
Thanks to these achievements, Mothers Pharm has recorded a rapid growth rate of 32.3% annually since its establishment. It posted sales of 24.2 billion KRW in its fifth year, 2016, 64.6 billion KRW in 2019, and surpassed 100 billion KRW with 106.6 billion KRW in 2022, followed by a sharp rise to 159 billion KRW last year. This year, it is on the verge of reaching 200 billion KRW in sales.
Kim evaluated, "Although there were limitations with generics, the 'first generic' products received some attention, and as stable production and supply became possible, the market showed considerable interest."
The stable production and supply of first generic products were largely due to the Iksan plant, which began operations in 2022. Believing that a new factory was necessary for future growth, Mothers Pharm invested 37 billion KRW to complete the Iksan plant equipped with a smart factory system and global-level C-GMP certification.
Last year, the company produced a total of 977 million tablets, with 524 million tablets at the Gyeongsan plant and 453 million tablets at the Iksan plant. The Iksan plant produces diabetes treatment Teneglip tablets and obesity treatment Zerofat tablets. The operation of the Iksan plant has more than doubled production capacity and enhanced cost and quality competitiveness.
New drug development results becoming visible... "Considering additional pharmaceutical company acquisitions"
Lee Si-eun, head of development at Mothers Pharm, explained, "We are preparing to co-develop an oral obesity treatment drug that can compete with the injectable Wegovy," adding, "We will leverage the production capacity of the Iksan plant to challenge zero stockouts focusing on in-house produced products, and will put more effort into smooth drug supply and marketing support."
New drug development results are also becoming visible. The dry age-related macular degeneration treatment, selected as a national new drug development project this year, is preparing for phase 1 clinical trials next year. Being selected as a national new drug development project recognized the value of the research, marking the first time a new drug from Mothers Pharm has entered clinical trials. Other pipelines, including treatments for chronic pain and type 2 diabetes, are also preparing to apply for national new drug development projects.
Mothers Pharm aims to achieve 1 trillion KRW in sales by 2030. Kim said, "It is not an easy goal, but I believe we can easily reach at least 500 to 600 billion KRW," adding, "We are also considering additional pharmaceutical company acquisitions." He further stated, "We will continue to grow steadily through continuous investment, new drug development, and overseas market expansion, just as we have done so far."
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