Korea’s Daewoong Pharm focuses on novel drug development, overseas expansion

Daewoong Pharmaceutical Co.’s Fexuclue [Photo provided by Daewoong Pharmaceutical]

South Korea’s Daewoong Pharmaceutical Co. has transformed itself into a novel drug manufacturer from a generic player under the leadership of its Chief Executive Officer Jeon Sengho.

Jeon joined Daewoong Pharmaceutical in 2000 and worked for the global division for about 10 years before becoming the CEO in 2018. Over the five years at the helm, Jeon has transformed Daewoong Pharmaceutical into a leading novel drug developer.

“It was challenging to differentiate the company overseas with generic drugs as we did not have our own developed drugs,” Jeon said, in a recent interview with Maeil Business Newspaper.

Jeon’s personal realization of the importance of original drugs played a significant role in the remarkable transformation of Daewoong Pharmaceutical.

The drug manufacturer was able to develop Fexuclue and Envlo under the leadership of Jeon.

Fexuclue, released in 2022, is a potassium-competitive acid blocker (P-CAB) drug for gastroesophageal reflux disease (GERD).

Envlo, the first sodium-glucose cotransporter 2 (SGLT2) inhibitor-type diabetes treatment in Korea, entered the market in May last year.

“It took 14 years for Fexuclue to be released, and it is probably the only domestic drug that generates monthly sales in the range of 5 billion won ($3.82 million) in less than a year of its launch,” Jeon said.

Envlo is a product that was acquired from GC Biopharma Corp. in 2016 as a candidate substance in the non-clinical early stages and completed Phase 3 clinical trials. “We have been actively recruiting excellent talents for 5 to 10 years and practicing open innovation, which has helped us develop our abilities to discern candidate substances,” he said.

Jeon plans to continue his efforts to translate the success in the new drug development into actual sales. In particular, Envlo is expected to become a robust revenue source as it can evolve into a combination drug covering various diseases such as heart failure and renal failure.

Jeon said that the company is preparing for phase 2 and 3 clinical trials of Envlo for obesity treatment. It is also looking at combination therapies to expand the indication to dementia.

For Fexuclue, Daewoong Pharmaceutical is looking for a local partner to conduct clinical trials in overseas markets.

Its bold moves continue in the field of candidate substances, which serve as the foundation for new drug development.

Daewoong Pharmaceutical Co.’s headquarters [Courtesy of Daewoong Pharmaceutical]

Despite the global economic downturn, the company successfully concluded two contracts in the technology export market. Daewoong Pharmaceutical is the only domestic company to have won more than two technology export deals this year.

In January, the company sold Bersiposocin, a therapeutic substance for idiopathic pulmonary fibrosis, to CS Pharmaceuticals Ltd. for 413 billion won. It also signed a licensing agreement with Vitalli Bio for DWP213388, an autoimmune disease candidate for 63.91 billion won in April.

In particular, the contract for DWP213388 was signed during President Yoon Suk Yeol’s visit to the U.S. and contributed to enhancing the current government’s overseas achievements.

Daewoong Pharmaceutical secured 1 trillion won in technology exports in the first half of this year. With additional candidate substances currently under discussion, the company is expected to secure 2 trillion won within the year.

“We have two to three more candidates in the 100 billion to 200 billion won range that we are discussing with global pharmaceutical companies,” Jeon said.

“We also have three to four candidates that are in the final stages of selection after years of research, for which we will enter clinical trials next year.”

He added that the company will make significant achievements in three areas, including autoimmune diseases, cancer, and fibrosis, which are high growth areas in the future.

Jeon envisions Daewoong Pharmaceutical as a biopharmaceutical company that is recognized not only in Korea but also overseas.

“Last year, half of our operating profit of 50 billion won came from overseas,” he said, “We will continue to carry out our bold moves, such as clinical trials for new drugs and technology exports, to increase our scale.”

In addition to drawing up macro-level strategies as CEO, Jeon also plans to personally engage in various efforts. “I began discussions with foreign companies regarding the export of Luphere Depot, a treatment for sexual precocity, at Bio USA earlier this month,” he said. “I will also focus on expanding the sales of botulinum toxin NABOTA to 11 European countries in the near future.”