SK Biopharm with "Big Biotech" Slogan... "Will Lead Profit Turnaround with Xcopri"

SK Biopharm Press Conference
CEO Donghoon Lee "Leap to Big Biotech"

Expanding 3 Major Platforms: CGT, RPT, TPD
Aiming for 19 Trillion KRW Valuation by 2026

SK Biopharm announced a strategy to make its epilepsy treatment ‘Xcopri (generic name cenobamate)’ the number one product in the market and to continue growth through three major pipelines: cell and gene therapy (CGT), radiopharmaceutical therapy (RPT), and targeted protein degradation (TPD). Through this, the company aims to turn profitable in the fourth quarter of this year and increase its corporate value to 19 trillion won by 2026.

Lee Dong-hoon, President of SK Biopharm, is speaking at a press conference held on the morning of the 18th at the Conrad Hotel in Yeouido, Yeongdeungpo-gu, Seoul.
[Photo by Lee Chun-hee]

On the morning of the 18th, Lee Dong-hoon, CEO of SK Biopharm, said at a press conference held at the Conrad Hotel in Yeouido, Yeongdeungpo-gu, Seoul, "We will leap to become a global top-level ‘Big Biotech’ through accelerating the growth of Xcopri, acquiring a second commercialized product, and securing promising technologies via an innovative new drug development platform." Big Biotech refers to companies that continuously develop new drugs by introducing innovative technologies through active inorganic growth based on high cash generation capabilities.

Xcopri, the core of growth, is a third-generation epilepsy treatment that overcomes side effects and, unlike other treatments that act only on either excitatory or inhibitory signal transmission targets, acts on both targets. Since surpassing 20,000 monthly total prescriptions (TRx) for the first time in March, it has shown a significantly faster growth rate compared to competing products. If this trend continues, it is expected to break the quarterly break-even point (BEP) within this year, achieve 30,000 monthly TRx by next year, and reach the annual break-even point.

Growth momentum has also been created as the patent for ‘Vimpat (generic name lacosamide)’, one of the biggest competitors from Belgian UCB Pharma, expired in March. Epilepsy treatment involves combination therapy with various drugs rather than a single drug. Therefore, with the expiration of the original patent and the launch of numerous inexpensive generics, patients with more financial flexibility can now take Xcopri together. Currently, Xcopri ranks second in market share in the U.S., following UCB’s third-generation epilepsy treatment ‘Briviact’. SK Biopharm aims to surpass Briviact’s TRx by next year and achieve the number one market share.

Expectations for profitability are also high. Sales of Xcopri in the U.S. are directly handled by SK Life Science, SK Biopharm’s U.S. subsidiary. With a sales force of 120 people nationwide and insurance coverage reaching 97%, the gross profit margin is said to be in the mid-90% range. The company projects that by 2029, Xcopri’s performance will reach annual U.S. sales of $1 billion (approximately 1.27 trillion won) and operating profit of $600 million (approximately 760 billion won).

Conceptual Diagram of Radiopharmaceutical Therapy (RPT) [Image Source=SK Biopharm]

The introduction of technology platforms that can create synergy with existing assets is also progressing smoothly. Partners in each field have already been secured.

First, TPD, a technology that degrades and removes targeted proteins to address the root cause of diseases, is centered on ProteoVant Sciences, which SK Biopharm announced plans to fully acquire last month. ProteoVant was established in 2020 as a joint venture between SK Inc. and the U.S. biotech venture Roivant. At that time, SK Inc. invested $200 million (approximately 220 billion won) to secure a 40% stake, and SK Biopharm acquired a 60% stake for $47.5 million (approximately 62 billion won), resulting in a total acquisition cost of 280 billion won, making SK Group the full owner. This acquisition secured TPD technology and established a research base in the U.S.

Next, RPT is a next-generation cancer treatment technology that combines radioactive isotopes that kill cells with targeted substances to attack only cancer cells. The therapeutic radioactive isotope ‘Actinium-225 (Ac-225)’ produced by TerraPower, a nuclear venture company founded by Bill Gates in which SK Inc. invested $250 million (approximately 300 billion won), is expected to be the core of this business. Ac-225 is regarded as the best raw material for targeted alpha therapies that destroy cancer cells without damaging normal cells.

SK Biopharm has signed exclusive supply contracts for Ac-225 with TerraPower covering four Asian countries including Korea, Vietnam, Malaysia, and Indonesia, and plans to actively expand into markets in the U.S., Asia, and China. CEO Lee Dong-hoon said, "An RPT product released last year failed to reach expected sales due to insufficient supply of radioactive isotopes," adding, "It is difficult to obtain radioactive isotopes, but we have easy access to them."

CGT production capacity has been secured as SK Inc.’s contract development and manufacturing organization (CDMO) subsidiary SK Pharmteco acquired CGT-specialized CDMOs such as CBM in the U.S. and Iposketch in France. The plan is for SK Pharmteco to manufacture substances developed by SK Biopharm, and SK Life Science to handle sales, creating synergy within the group.

SK Biopharm's Growth Strategy Roadmap [Image source=SK Biopharm]

Through this, SK Biopharm plans to grow into a global Big Biotech valued at $15 billion (approximately 19 trillion won) by 2026, leveraging stable cash generation and three new modalities (therapeutic approaches). Specifically, additional goals include launching a second commercial pharmaceutical product by 2026 and advancing two to three or more pipelines into clinical trials in research and development (R&D).

CEO Lee Dong-hoon said, "We will re-leap as a balanced Big Biotech with a differentiated business model by expanding from existing asset bases to technology platforms, from small molecules to biologics, and from the central nervous system field to oncology."

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