SK Biopharm mulls acquiring firms, drug sales rights in US

SAN DIEGO, California -- South Korea’s SK Biopharmaceuticals Co. is considering acquiring firms in the US, or the sales rights to some of their approved medicines, to expand its business in the world’s largest pharmaceutical market, said its Chief Executive Lee Donghoon.

The drug-developing subsidiary of South Korea’s No. 2 conglomerate SK group plans to sell other remedies in the US next year based on its network for its flagship epilepsy drug Cenobamate, Lee said on Thursday.

“We are preparing medicines to sell, utilizing about 130 sales staff in the US,” Lee told reporters on the sidelines of the BIO International Convention held in San Diego on June 4-6. “We are also considering various other measures including the takeover of other companies, or their approved drug sales rights.”

Central nervous system drugs including seizure disorder medication, which can be associated with Cenobamate sold under the brand name Xcopri, are under consideration, Lee said.

SK Biopharmaceuticals is reportedly in talks with several companies on the plan.

The move came as the trade rift between the US and China extended to the bio sector with Washington lawmakers seeking to pass the Biosecure Act, a bipartisan bill aimed at prohibiting American companies from working with Chinese biotech firms, which Lee described as “a very important opportunity.”

“In the market where SK Biopharm is recognized as the top epilepsy drug maker, we aim to expand the business into all central nerve system treatments and anticancer medicines,” Lee said, adding it is planning to air TV commercials in the US from the third quarter.

The company is likely to unveil details of the moves at the JPMorgan Healthcare Conference in San Francisco scheduled on Jan. 13-16, 2025, he said.

TO REDUCE RELIANCE ON CENOBAMATE

SK Biopharmaceuticals aims to reduce its reliance on Cenobamate by introducing other medicines.

“It will stabilize if we make sales of the main product and the combined sales of the second and third items account for 70% and 30% of total revenue, respectively, in the next two to three years,” he said.

SK Biopharmaceuticals’ sales rose 44.2% to 354.9 billion won ($259.6 million) last year, of which Cenobamate generated 270.8 billion won in US sales.

The epilepsy drug’s strong sales helped the company turn around in the fourth quarter of last year and remain in the black in the first three months of 2024.

“Cenobamate’s sales this year are expected to beat market forecasts,” Lee said. “We are predicted to log a stable profit this year.”

The company logged an operating loss of 37.5 billion won in 2023, less than a third of the 131.1 billion won deficit the previous year.

R&D IN US

SK Biopharmaceuticals aims to work on research and development in the US since it acquired the entire stake in a bio joint venture in the country held by its partner, Lee said.

The company purchased a 60% stake in ProteoVant Sciences Inc. for $47.5 million from Switzerland-based Roivant Sciences last year.

“We secured about 40 researchers including seven executives who participated in the developments of 10 new drugs approved by the FDA through the buyout,” Lee said, referring to the US Food and Drug Administration. “We aim to conduct R&D in the world’s largest US market.”

Separately, SK Biopharmaceuticals plans to unveil a detailed roadmap on radiopharmaceutical therapies in the third quarter, which the company aims to develop, including what to create and how to carry out clinical trials.

Write to Dae-Kyu Ahn at powerzanic@hankyung.com
 

Jongwoo Cheon edited this article.