[Reporter’s Notebook] Details Needed for K-Bio’s Leap to Global Top

Lee Chun-hee, reporter for the Bio, Start-up and Venture Department

“Annual growth of 20% based on the world’s No.1 production capacity” (Samsung Biologics), “Leap to global big pharma through securing new drugs” (Celltrion), “Rising to the global top 50 pharmaceutical companies” (Yuhan Corporation·SK Biopharm)....

These are the blueprints presented by our pharmaceutical companies invited to the world’s largest pharmaceutical and bio investment event, the JP Morgan Healthcare Conference (JPMHC), held last week in San Francisco, USA. If realized as planned, the pharmaceutical and bio sectors will become the “next-generation semiconductor” responsible for the future growth engine of the Korean economy.

This rosy dream is not just wishful thinking. Investments supporting the announced plans are underway, and results are emerging. Samsung Biologics, estimated to have an operating profit of 1 trillion won last year, is continuously building large-scale factories to increase production capacity. Celltrion is steadily accumulating various new drug pipelines, including the gastrointestinal disease treatment ‘Zimpentra’. Yuhan Corporation and SK Biopharm’s goal of entering the global top 50 is achievable with annual prescription sales of 1.5 to 2 billion dollars (approximately 2 to 2.6 trillion won), so if new drugs ‘Reclaza’ and ‘Cenobamate’ become blockbusters, this plan can be realized.

This JPMHC also served as a venue to confirm how much global companies are paying attention to the Korean pharmaceutical and bio industry. From early morning on the opening day, names such as Chong Kun Dang, Yuhan Corporation, LegoChem Bio, and Orum Therapeutics were mentioned as key technology partners in presentations by big pharma companies like Novartis and Johnson & Johnson (J&J). More than half of the 500 attendees at ‘Korea Night’, originally held as a domestic company exchange event, were foreigners, so English was heard more than Korean at ‘The Cube’, the premium club venue.

However, our pharmaceutical and bio companies on the global business stage also showed weaknesses in details. Yuhan Corporation disclosed its expected sales for this year but was criticized for needing to announce it through the Seoul Stock Exchange and requested the press to delete the report. When Celltrion Chairman Seo Jung-jin officially announced at the presentation that he would raise 100 trillion won in fund capital by selling holding company shares, the Korean headquarters immediately clarified that the entire amount would not be raised solely through share sales. Compared to other manufacturing industries such as automobiles and semiconductors, our pharmaceutical and bio industry is still at the beginner stage of global expansion. To gain the trust of global investors, perfection without mistakes from the start is essential.

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