Daewoong Pharmaceutical Enters Biosimilar Market with Former Celltrion Executive Leading New Division
Key Insights
Daewoong Pharmaceutical (search) has launched a biosimilar (search) business division led by Hong Seung-suh, a former Celltrion executive with nearly 20 years of biosimilar experience.
The Korean pharmaceutical company aims to capitalize on the rapidly growing global biosimilar (search) market, which reached $26.5 billion in 2023 and is projected to reach $185.1 billion by 2033.
Daewoong plans to pursue strategic partnerships with domestic and international biosimilar (search) companies and CDMOs to expand its product portfolio and enter major markets including Europe and the United States.
Daewoong Pharmaceutical (search) announced Tuesday its entry into the biosimilar (search) market, appointing former Celltrion veteran Hong Seung-suh to head the new biosimilar business division as the Korean traditional drug maker seeks new growth engines in the rapidly expanding global market.
Strategic Leadership Appointment
Hong Seung-suh brings nearly 20 years of biosimilar (search) expertise to Daewoong, having led biosimilar R&D and global commercialization at Celltrion between 2002 and 2019. During his tenure at Celltrion, he directly managed the entire development cycle from research through global commercialization of biosimilar products, serving in key roles including president of Celltrion's research division, CEO of Celltrion Healthcare (search), and CEO of LOP Bio (search).
"It's very meaningful that Daewoong Pharmaceutical (search), which has contributed to improving the health of Koreans over the last 80 years, is entering the biosimilar (search) market," Hong stated. "Biosimilar is a sector that can play a very important role in creating a medical environment in which anyone can receive treatment."
Market Opportunity and Growth Projections
The global biosimilar (search) market presents significant growth potential, according to IMARC Group (search) analysts. The market reached $26.5 billion in 2023 and is projected to expand dramatically to $185.1 billion by 2033, driven primarily by patent expirations on reference biologics and increasing demand for medical cost reduction.
Biosimilar (search) products offer distinct advantages over traditional drug development, including shorter development periods and higher chances of approval compared to new drugs. Recent regulatory developments have further enhanced the sector's attractiveness, with the European Medicines Agency (search) (EMA) announcing new guidelines in March 2024 that allow approval with only quality data and Phase 1 clinical trials, eliminating the need for Phase 3 studies in certain cases.
Strategic Business Approach
Daewoong's biosimilar (search) strategy centers on both internal development capabilities and external partnerships. The company plans to actively pursue strategic alliances with domestic and international biosimilar players and contract development and manufacturing organizations (CDMOs) to rapidly expand its product portfolio.
"We plan to actively seek domestic and international partnerships for the antibody drug biosimilar (search) business," a Daewoong Pharmaceutical (search) official explained. "We are preparing to become a global bio company by expanding development items and entering major markets such as Europe and the United States in the long term."
CEO Park Seong-soo emphasized the company's comprehensive approach to market entry: "As Daewoong Pharmaceutical (search) boasts experience learned from developing a variety of medicines and commercializing them, and thanks to our global partnership capabilities, we will be able to demonstrate our distinctive ability to take action through not only self-development but also co-development in the biosimilar (search) market."
Long-term Vision and Market Impact
The biosimilar (search) initiative represents a fundamental shift in Daewoong's business strategy, positioning the company to compete in global markets while addressing healthcare accessibility challenges. Biosimilar products, which are biologic medicines very similar to already approved reference biologics, are considered more affordable treatment options that can replace pricier drugs.
Hong emphasized the broader healthcare impact of the company's entry into biosimilars: "Based on Daewoong Pharmaceutical (search)'s sales network and driving force, we will contribute to offering better accessibility to treatment for all patients in the world."
Park outlined the company's measured approach to market development: "Instead of being satisfied with short-term achievements, we plan to carry out our mid- to long-term strategies step-by-step with the goal of becoming an impactful player in the global market."
The strategic move positions Daewoong to leverage existing protein drug research, development, production, and commercialization capabilities while capitalizing on the cost competitiveness and reduced development risks inherent in biosimilar (search) development compared to novel drug discovery programs.