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Celltrion Chairman Seo Jung-jin (Celltrion) |
[Alpha Biz= Kim Jisun] Chairman Seo Jung-jin acknowledged misjudgments in the distribution structure that contributed to the underperformance of biosimilar drug Jimptetra in the U.S. market and presented the company’s strategy to address these challenges. He expressed optimism that once Jimptetra is listed on major U.S. insurance formularies, it will experience growth trends similar to those of Remsima SC in Europe.
On May 15, Celltrion held an online investor briefing to share its response strategies amid external variables such as U.S. President Donald Trump’s drug price reduction policies and to discuss major business outlooks. Chairman Seo devoted considerable time to alleviating market concerns related to Jimptetra’s lackluster sales.
The briefing came in the wake of a sharp decline in Celltrion’s market capitalization following Jimptetra’s disappointing performance announcement. The company’s ranking on the KOSPI market cap list dropped from 6th to 11th since early last month, with a market value of KRW 34.4 trillion as of the previous day.
Seo pinpointed the complexity of the U.S. pharmaceutical distribution network as a key factor behind the sales shortfall. “We initially assumed that once a biosimilar is listed on Pharmacy Benefit Managers (PBMs), it would be promptly included on insurance formularies, similar to original drugs. However, the listing process actually takes about eight to nine months. For the largest insurers, nine months have passed without listing,” Seo explained.
He admitted, “I acknowledge my mistake in underestimating the intricacies of the U.S. distribution system early on.” Nevertheless, he cited the rapid market adoption of the Remsima SC formulation over intravenous forms in Europe as a precedent, projecting a comparable growth trajectory in the U.S. once insurance formulary listing is achieved.
At launch last year, Jimptetra targeted annual sales of KRW 250 billion but only achieved KRW 36 billion. At this year’s shareholder meeting, Celltrion set a revised annual sales goal of KRW 700 billion. However, with first-quarter sales at just KRW 13 billion, the company recently lowered the target to KRW 350 billion.
Celltrion faced shareholder criticism due to multiple downward revisions of Jimptetra’s sales guidance. Seo explained, “Due to delays in administrative procedures, the company had little choice but to wait, and the start-up curve took longer than expected (prior to September last year). Consequently, we had to lower the 2025 U.S. sales target for Jimptetra from KRW 700 billion to KRW 350 billion during the first-quarter earnings announcement.”
Seo remained confident that Jimptetra will follow Remsima’s growth pattern in Europe and expects sales to increase steadily over upcoming quarters. The company plans to announce updated sales forecasts in August.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
