Pharmaceutical and Bio Companies' General Meeting Results... Mixed Fortunes Between Performance and Stock Prices

[Asia Economy Reporter Lee Gwan-joo] This year, many domestic pharmaceutical and bio companies have laid the groundwork to secure future growth engines by replacing management through regular shareholders' meetings and diversifying their businesses. While some companies achieved record-high performance last year amid the COVID-19 situation, others faced criticism from minority shareholders due to recent stock price declines.

◇ Mixed fortunes for Celltrion and Samsung Biologics= According to the pharmaceutical and bio industry on the 30th, the atmosphere at the shareholders' meetings of Samsung Biologics and Celltrion, representatives of the domestic bio industry, was quite different. Samsung Biologics, which held its regular shareholders' meeting the day before, swiftly concluded the meeting in about 30 minutes with shareholders' approval of five agenda items, including approval of financial statements, appointment of directors and audit committee members, and approval of director remuneration limits. The company received praise for its strong performance, recording KRW 1.568 trillion in sales and KRW 537.3 billion in operating profit last year, up 35% and 84% respectively from the previous year, as well as for developing future growth engines such as contract manufacturing of COVID-19 messenger RNA (mRNA) vaccines. John Rim, CEO of Samsung Biologics, said, "This year, we will actively share the fruits with our shareholders and grow together by launching a global comprehensive bio company through a KRW 3 trillion paid-in capital increase and actively considering cash dividends after 2025."

On the other hand, Celltrion bowed its head amid recent stock price declines despite recording a record-high sales of KRW 1.8908 trillion last year. Honorary Chairman Seo Jung-jin made a surprise appearance via phone call at the regular shareholders' meeting held on the 25th, apologizing, "As an honorary chairman and major shareholder, I sincerely apologize for unintentionally causing much hurt to shareholders due to the current undervaluation of the company's value." CEO Ki Woo-sung also conveyed his intention to receive only the minimum wage until the stock price recovers to a certain level, at the request of shareholders.

◇ ‘Reshuffling the deck’ through management changes= Many pharmaceutical and bio companies also entered new management systems by changing their captains. Huons appointed Song Soo-young and Yoon Sang-bae as new co-CEOs. CEO Song, a professional manager who served as CEO of Deloitte Consulting Korea and Japan, will oversee the innovation of Huons' management system. CEO Yoon, a pharmaceutical sales and marketing expert who joined Huons after working at Chong Kun Dang, Samsung C&T, GSK Korea, and Boryung Pharmaceutical, is expected to oversee Huons' sales and marketing.

Dong-A ST shifted from the dual leadership of Chairman CEO Eom Dae-sik and President CEO Han Jong-hyun to a single CEO system under Kim Min-young. CEO Kim is a seasoned planner who has served as head of Dong-A Pharmaceutical's management planning office, head of Dong-A ST's medical device business division, and head of Dong-A Socio Holdings' management planning office. Samjin Pharmaceutical established its first-ever single professional CEO system since its founding, transitioning from co-CEOs Jang Hong-soon and Choi Yong-joo to sole CEO Choi Yong-joo. Anguk Pharmaceutical also established a professional CEO system under CEO Won Deok-kwon after the founding family stepped down from all representative positions.

Boryung Pharmaceutical appointed Kim Jung-gyun, CEO of Boryung Holdings, to establish a joint management system with CEO Jang Doo-hyun. With the appointment of Kim Jung-gyun, grandson of Boryung Pharmaceutical Group founder Chairman Kim Seung-ho, Boryung Pharmaceutical has officially established a third-generation management system. The company also changed its name from Boryung Pharmaceutical to ‘Boryung,’ reflecting CEO Kim Jung-gyun’s intentions. The company explained, "In a changing environment, we changed the company name to expand more growth and investment opportunities not only in the domestic pharmaceutical industry but also in the global market and the healthcare industry as a whole."

This content was produced with the assistance of AI translation services.