“Yuhan’s change is just warming up with Leclaza”

An interview on Yuhan Corporation CEO Lee Jung-hee

Since his appointment in 2015, R&D strategy got bold and now they are paying off

31st Korean-made new drug Leclaza approved by the Korean health authority

CEO Lee Jung-hee

“We believed the path for Yuhan Corporation taking the step forward to another century ahead would be through new drug pipeline.

 

We are exhilarated to see the world acknowledging the company’s first proud outcome of the open innovation strategy, Leclaza (lazertinib).” During an interview with Daily Pharm on Jan.

 

18, Yuhan Corporation CEO Lee Jung-hee seemed exceptionally composed, regardless of the news that the South Korean health authority approving Leclaza.

 

He almost seemed unburdened by the news as if his whole maneuver in last six years was finally paid off.

 

On the day, the Ministry of Food and Drug Safety (MFDS) authorized the marketing of a 31st Korean-made new drug and Yuhan Corporation’s next-generation novel drug for lung cancer, Leclaza.

 

The drug is the South Korean company’s brand new novel drug to be developed since an ulcer treatment Revanex in 2005.

 

CEO Lee reminisced and noted, “Year 2026 would mark a centennial anniversary of Yuhan Corporation.

 

And I became the CEO at the pivotal point in time, just before the centennial anniversary.

 

I kept thinking about how to change the public’s evaluation that the company’s new drug pipeline is weak compared to the revenue.” After a thorough contemplation, CEO Lee apparently made a first command; ‘Invest bold.’ This is how the company took a groundbreaking shift in the external investment strategy for last few years.

 

“The answer was clear, once I put myself in the shoes of the late founder Dr.

 

New Ilhan.

 

Based on the abundant cash flow, I decided it was time to explore a future growth driver.

 

And I came to a conclusion that the open innovation is the only way to push up the new drug R&D capacity the company was falling short of,” the CEO elaborated.

 

It matched with the CEO’s philosophy that even a pharmaceutical company with a long history of 100 years should learn from a venture company’s speed and passion to not fall behind.

 

Since his appointment in March 2015, CEO Lee immediately endeavored to reform the company to develop new drug.

 

A vast number of R&D staffs were recruited, and the R&D investment ratio kept at 5 percent was doubled to 10 percent.

 

Last year, the company spent 200 billion won in R&D.

 

The South Korean company also boldly invested on promising venture companies financially hindered to develop new drug.

 

Starting from Oscotec that originally found Leclaza, the company invested hundreds of billion wons in Genexin, Bioneer, Abclon, Pharmabcine, and NeoImmuneTech.

 

The company was on to secure source technology that would leverage the future for the company.

 

Yuhan Corporation is currently leading Phase III global clinical trials on Leclaza monotherapy in 17 different countries around the world.

 

The company is speeding up the Leclaza commercialization to level with Janssen’s investigational drug amivantamab as a combination therapy.

 

Although the clinical trials are still in progress, the anticipation on Leclaza is heightening.

 

A global market research firm Global Data projected the value of lazertinib as both monotherapy and combination therapy would be valued at USD 569 million a year.

 

The value of the pipeline soared as the company’s two-track strategy to develop both the monotherapy and combination therapy worked.

 

The investigational drug Leclaza is already the company’s biggest cash cow.

 

Besides the 50 million dollars paid upfront for the license-out deal, the drug generated over 100 million dollars of technology payment in last year only.

 

Leclaza is the only Korean-made new drug that made over 100 billion won additional to the license-out upfront payment.

 

CEO Lee said, “The company could have missed out on both the pipeline and profit, if it was only fixated on the short-term performance.

 

But by ceaselessly seeking the external investment opportunity for the future growth driver, the public perception on the company was changed naturally.” “Yuhan’s change is just warming up.

 

Watch how Yuhan Corporation takes the new leap as a global pharmaceutical company,” the CEO urged.