November 22, 2024

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Celltrion Group Founder and Chairman Seo Jung-jin (center) and Celltrion CEO Seo Jin-seok (right) attend the Morgan Stanley 22nd Annual Global Healthcare Conference in New York on Friday. (Celltrion Group)

Celltrion Group Founder and Chairman Seo Jung-jin has announced plans to expand the company's pharmaceutical production facilities either in South Korea or abroad as part of its strategy to enter the contract development and manufacturing organization sector. The biosimilar giant also aims to commercialize a total of six new drug pipelines by the end of 2029.

"Expanding manufacturing facilities is crucial for securing production capacity and ensuring a sustainable future," Seo reportedly said on the final day of the Morgan Stanley 22nd Annual Global Healthcare Conference in New York, on Friday. "We will make a final decision on the location of new plants, whether in Korea or abroad, by the end of this year."

At the event, Seo explained that Celltrion intends to operate its CDMO facilities through a wholly-owned subsidiary. The move will allow the company not only to develop and produce drugs but also to offer development and manufacturing services to other companies.

This year's Morgan Stanley Global Healthcare Conference attracted more than 400 promising biotechnology firms and institutional investors from across the globe.

Celltrion CEO Seo Jin-seok presented on the theme, "From Pioneer to Innovator," outlining Celltrion's new drug pipeline, biosimilar development and future plans.

Following the presentation, the chairman participated in a discussion with Daniel Cohen, global head of Morgan Stanley's pharma services investment banking. During the session, Seo shared Celltrion's growth outlook and vision for new business opportunities.

Celltrion believes it can achieve significant competitiveness in the CDMO market by leveraging its expertise in managing the drug supply cycle and offering customized services to meet diverse company needs. The company has met the FDA's stringent cGMP standards for large-scale CDMO orders. Key global CDMO players include Switzerland's Lonza, Korea's Samsung Biologics and China's Wuxi Biologics.

"We are actively exploring investment opportunities to establish ourselves as a global big pharma. If the right opportunity arises, we will act swiftly," the chairman said.

The company plans to introduce two new ADC drugs within this year and begin clinical trials next year.

By 2025, Celltrion aims to secure 11 product licenses and expand its portfolio to 22 products by 2030. This multiproduct strategy is expected to strengthen the company's negotiating leverage with pharmacy benefit managers.

The chairman projected that the company will reach its target sales of 3.5 trillion won ($2.6 billion) this year. If Zymfentra, Celltrion's key treatment for autoimmune diseases, successfully expands its market share in the US as planned, Celltrion could potentially surpass 5 trillion won in sales, according to Seo.

By Kim Hae-yeon (hykim@heraldcorp.com)