Celltrion chairman announces venture into CDMO market
Dae-Kyu Ahn
Sep 09, 2024 (Gmt+09:00)
Seo Jung-jin (center) speaks at Morgan Stanley 22nd Annual Global Healthcre Conference (Courtesy of Celltrion) South Korea’s biosimilar maker Celltrion Inc. will venture into the contract development and manufacturing organization (CDMO) market, the company said on Monday, citing its founder and Chairman Seo Jung-jin's comments at the Morgan Stanley 22nd Annual Global Healthcare Conference last week.
Seo said at the conference in New York that it was seeking to establish a wholly owned subsidiary in charge of the CDMO business, without elaborating further.
The CDMO market is emerging as a blue ocean for domestic biologics companies, including Samsung Biologics Co., Lotte Biologics Co. and stem-cell therapy company Medipost Co.
NEW PLANT CONSTRUCTION
Celltrion also plans to build a new factory to expand production and will decide by the end of this year whether to buy the plot of land for new plant construction at home or abroad.
Seo said the facility expansion will bolster its competitiveness in the antibody biosimilar market from development to clinical testing, production, new drug application and sales.
Celltrion is poised to start commercial operation of its third plant in December this year.
At the conference, his eldest son and Celltrion CEO Seo Jin-seok also gave a presentation and said it will reveal two new antibody-drug conjugates (ADCs) within the year and launch their clinical tests next year.
It is aiming to commercialize one of its three new ADCs and three new multiple antibody drugs under development by 2029.
For biosimilar products, it aims to obtain approval for 11 types of products by 2025 and build a portfolio of 22 biosimilar candidates by 2030 to expand beyond autoimmune diseases into asthma, urticaria, eye diseases and metabolic bone diseases.
Celltrion forecasts Zymfentra, an FDA-approved subcutaneous injection formulation for autoimmune diseases, to generate 250 billion won ($186 million) in sales this year.
Zymfentra (infliximab) has made it onto the insurance-covered drug lists of three major US Prescription Benefit Managers (PBMs) since its US launch in March.
Chairman Seo expects the company to rake in 3.5 trillion won in sales in 2024 and 5 trillion won in 2025, compared with 2.2 trillion won in 2023.
He reiterated it has been on the hunt for M&A targets to grow into a big global pharmaceutical company.