[피플&] The next corona treatment… Celltrion Chairman Seo Jeong-jin, a new challenge

[서울=뉴스핌] Reporter Park Da-young = Seo Jeong-jin, Chairman of Celltrion Group, had a special year last year. He kept his last promise as Celltrion manager last year. This is the development of the antibody treatment drug’Rekirona’ for novel coronavirus infection (Corona 19).

Chairman Seo left the position of chairman after developing Rekkirona. Regarding the rise of Rekirona as the No. 1 domestic Corona 19 treatment, the industry analyzes that Chairman Seo, who raised Celltrion Group as a synonym for K-Bio in Korea, which has been a’bio wasteland’ for 18 years, worked.

After retirement of Chairman Seo, who kept not only the development of Rekkirona, but also the promise to withdraw from management, new challenges are noted.

[인천=뉴스핌] Photo Co-Coverage Group = Celltrion Group Chairman Seo Jeong-jin greets attendees at the’New Coronavirus Infectious Disease (Corona 19) Antibody Treatment Production Site Inspection’ held at Celltrion Plant 2 in Yeonsu-gu, Incheon on the afternoon of the 8th. 2021.02.08 [email protected]

◆ Last year as Chairman of Celltrion Group

Chairman Seo assured that he would lead the end by developing an antibody treatment when the Corona 19 epidemic was seen in Korea centered on Shincheonji Daegu Church.

The reaction of the industry was mixed with Chairman Seo’s proclamation in that it usually takes about 10 years to develop a new drug and costs trillions of won. There was also a positive view that it would take the lead in ending the pendemic as a bio company beyond profit creation, but some predicted that it would be impossible in reality. In conclusion, Celltrion succeeded in developing a treatment, and Chairman Seo kept the promise.

As the time it takes to develop new drugs has been reduced to a tenth level, the last year of Celltrion has passed urgently.

Celltrion started developing antibody treatments in February of last year. After that, a neutralizing antibody candidate that neutralizes the virus was discovered within 1 month, and the effect of improving symptoms was confirmed in animal tests within 3 months of development. From July, it entered human clinical trials. On December 29, last year, it applied for conditional permission from the Ministry of Food and Drug Safety by synthesizing clinical data. Finally, on the 5th, the product was approved under the condition of conducting phase 3 clinical trials.

In particular, Chairman Seo received attention by remarking, “Corona 19 antibody therapy is a public good,” and “We will not create a business model that pursues profits with antibody therapy.”

Although the supply price has not been confirmed yet, Celltrion plans to supply Rekkirona shares to Korea at the cost level. It is known that the cost of a single dose of Rekirona is around 400,000 won. Domestic patients receive free medication, and the government and the Health Insurance Service are expected to share the cost.

◆ The myth of a salary man… Operating profit KRW 1 trillion as a bio leader

Chairman Suh’s commitment was not just the development of Rekkirona. He also kept his retirement promise, saying,’Like other executives, I will leave at the age of 65.’

Chairman Seo resigned himself from the group management line on December 31 of last year without a separate resignation ceremony. The official title will be maintained only until the new chairman of the board of directors is elected at the shareholders’ meeting in March. If a successor is decided, he will remain only as an unpaid honorary chairman. However, there are observations in the industry that it is possible to continue to play the role of manager without completely ending a relationship with Celltrion.

Chairman Seo is considered to be the’myth of the office worker’. A former office worker, he founded Celltrion in 2002. It is selling biosimilars (generic biopharmaceuticals) to advanced markets such as the US and Europe after 18 years of establishment. Celltrion Group (Celltrion, Celltrion Pharmaceutical, Celltrion Healthcare) is expected to exceed 1 trillion won in operating profit for the first time since its establishment last year. Sales already exceeded 1 trillion won in the third quarter.

Celltrion Group plans to separate ownership and management after Chairman Seo retired and transform into a professional manager system. Chairman Seo has mentioned that he will not hand over the position of CEO to his two sons, including the eldest son Jin-seok Seo, senior vice president of Celltrion and the second son Jun-seok Seo, director of Celltrion. Currently, only the chairman of Celltrion’s board of directors is entrusted to senior vice president Jin-seok Seo.

The merger of the three companies Celltrion, Celltrion Healthcare, and Celltrion Pharmaceuticals is underway to change the system.

Last year, Chairman Seo founded Celltrion Healthcare Holdings, a holding company, by investing a stake in Celltrion Healthcare in kind. This year, Celltrion’s holding companies Celltrion Holdings and Healthcare Holdings will be merged. After the merger with the holding company, it plans to merge the three companies Celltrion, Celltrion Healthcare, and Celltrion Pharmaceutical to separate the holding company and the business company.

In the Celltrion Group, when Celltrion produces biopharmaceuticals, healthcare and pharmaceuticals sell them overseas and domestic, respectively. Controversy has arisen over whether this process is “to drive the job”, and point out that sales and operating profit are inflated has been steadily raised. The merger of the three companies could lead to separation of ownership and management as well as an opportunity to resolve such controversies.

Chairman Seo emphasized, “(Celltrion) started with six startups, but we set our goal to be 30th in operating profit this year. We will develop into a pharmaceutical company that ranks 20th next year and 10th in 2025.”

◆ U-Health Care Startup Challenge

Chairman Seo predicted a new challenge this year. It is to leave Celltrion and return to becoming a healthcare startup entrepreneur. However, it has been revealed several times that it plans not to bring any existing Celltrion Group employees to the new startup.

The field he challenged is the U-healthcare industry. U-Healthcare is a health care service that utilizes ubiquitous and telemedicine technology. Medical services can be provided without time and space constraints.

Although it has not disclosed the details of the business yet, it is known that it has chosen the field of remote blood testing. This is a healthcare platform that allows individuals to take a drop of blood at home and check their health status remotely. It is a service in which the contents of the test are transmitted to the doctor, the data is checked remotely, and the drug is prescribed after treatment.

The chairman’s judgment is that future healthcare services cannot go against the big trend of telemedicine, and the most important thing in this direction is blood tests. Ultimately, Chairman Seo’s second start-up is expected to link patients-treatment-prescription-distribution with the fourth industry.

[email protected]