Celltrion merges and launches with founder’s son as leader

Celltrion and Celltrion Healthcare’s merger is complete... Changed to a three-person representative system

Woo-Sung Kee, Hyung-Ki Kim, and Jin-Seok Seo, eldest son of chairman Jung-Jin Seo will take leadership of the merged Celltrion

Celltrion’s Chair of the Board, Jin-Seok Seo, the eldest son of Celltrion’s Chairman Emeritus Jung-jin Seo, will helm the newly merged Celltrion.

 

The new CEO Seo will lead the company in a 3-person representative system with Hyung-Ki Kim, current CEO of Celltrion, and Hyung-Ki Kim, former CEO of Celltrion Healthcare.

 

Celltrion announced on the 28th through a resolution of its board of directors that it has completed the merger with Celltrion Healthcare and will be rebranded as a unified Celltrion.

 

At the meeting, the board also approved the appointment of three new Vice-chairs: Woo-Sung Kee, Vice Chairman of the Manufacturing & Development Division (currently CEO of Celltrion), Hyung-Ki Kim Vice Chairman of the Global Sales Division (former CEO of Celltrion Healthcare), and Jin-Seok Seo, Chairman of the Management Division (currently Chairman of Celltrion's Board of Directors).

 

Celltrion expects that the three-person representative system will enable faster decision-making and accelerated growth of the newly merged Celltrion.

 

(from the left) Representatives Woo-Sung Kee, Hyung-Ki Kim, and Jin-Seok Seo,

Celltrion expects the combined entity to consolidate assets that were previously spread across the two companies and leverage significant resources.

 

The new company will invest more aggressively in securing new growth engines such as biosimilar and new drug pipeline development, in-licensing, mergers and acquisitions (M&A), and digital healthcare.

 

In addition, the company expects to gradually reduce its cost of sales to 40% from the current level of 70% through business structure consolidation.

 

In particular, the company plans to expand its entry into major global markets rapidly increase sales, and expand the market share of its drugs based on the lower cost rate.

 

Currently, Celltrion has successfully commercialized 6 products – Remsima, Herzuma, Truxima, Vegzelma, Yuflyma, and Remsima SC (Zympentra).

 

Celltrion's strategy is to secure an 11-product lineup by 2025 and a total portfolio of 22 products by 2030.

 

In the case of Zympentra (the U.S.

 

brand name for Remsima SC), which is expected to be launched as a new drug in the U.S.

 

next February, is expected to become the flagship product of the integrated Celltrion.

 

The U.S.

 

TNF-α inhibitor market, which includes infliximab, is the world's largest at $47.36 billion (KRW 62.570 trillion) as of last year, and the inflammatory bowel disease (IBD) market, which Zympentra seeks to target first, is said to be worth about $9.827 billion (KRW 12.8 trillion).

 

Starting with Zympentra, Celltrion aims to generate 40% of its future sales from new drugs through a portfolio of promising new drugs including antibody-drug conjugates (ADCs), bispecific antibodies, and microbiomes.

 

For this, the company explained that it is focusing on securing a new drug pipeline through in-house development as well as collaboration with various domestic and foreign companies.

 

In addition, it plans to develop customized disease prevention and management solutions using clinical and genomic data it acquired over the years, and actively expand its business to the field of digital healthcare.