SK biopharm on track of achieving $1 bn U.S. sales by 2029: CEO

SK biopharmaceuticals Co.’s Chief Executive Officer Lee Dong-hoon. [Photo by Ko Jae-won]

South Korea’s SK biopharmaceuticals Co. is ready to swing to a profit this year and achieve $1 billion sales in the U.S. by 2029, according to its Chief Executive Officer Lee Dong-hoon.

“We hold a strong belief in swinging to profit this year,” Lee said, during a recent interview with Maeil Business Newspaper in Dallas, Texas. “Given our remarkable sales growth rate, attaining the goal of $1 billion in U.S. sales by 2029 appears feasible.”

Lee emphasized that the direct sales approach for the company’s Cenobamate, known as Xcopri in the U.S., has been successful in the U.S. market.

Renowned for its significant commitment to research and development (R&D) in the Korean pharmaceutical and biotech sector, SK biopharmaceuticals demonstrates a clear focus on novel drug development.

Its R&D investment relative to sales stood at 43.3 percent in the first half of this year, the highest among local pharma-bio companies in terms of last year’s R&D investment. The concerted effort culminated in the successful development of its epilepsy drug, Cenobamate.

“Speaking roughly, the drug reduces the frequency of seizures from 20 times a day to once a day,” Lee said.

In 2019, SK biopharmaceuticals was approved by the U.S. Food and Drug Administration (FDA) for use of Cenobamate, and entered the U.S. market in 2020. The decision to pursue direct sales was deemed unusual, as most companies opt for marketing agreements with local pharmaceuticals when launching products in the U.S.

In contrast, SK biopharmaceuticals views its direct sales strategy as highly effective. “Three years after our entry into the U.S. market, we have not only recouped the initial costs of establishing a direct sales system but also achieved a 100 percent profit on Cenobamate sales,” said Lee.

The sales of Cenobamate in the U.S. have experienced a steep ascent.

After exceeding 50 billion won in less than a year in the first quarter of this year from an initial 31.7 billion won in the first quarter of last year, the sales further doubled to 63.9 billion won in the second quarter of this year. With a quarterly average growth rate of 15 percent, projections suggest that sales could hit 80 billion won by the fourth quarter, leading the drugmaker to achieve profitability.

The recent conclusion of the pandemic and the normalization of hospital operations are anticipated to contribute to enhanced sales. “During the pandemic, face-to-face marketing approaches to hospitals were hindered, but as the pandemic wanes, our operations have regained momentum. Patients’ satisfaction with Cenobamate’s impressive efficacy is driving an increase in repeat prescriptions,” Lee said.

SK biopharmaceuticals anticipates to make profit this year, followed by sustained sales growth in the upcoming year. Given the current trajectory, the company is on track to achieve $1 billion in U.S. sales by 2029.

In addition to Cenobamate, SK biopharmaceuticals has strategic plans for the development of radiopharmaceutical therapy (RPT), Targeted protein degradation (TPD), and cell-gene therapy (CGT). “Starting from the second half of the next year, we will embark on a sequential development approach to establish dominance in those therapies over the next five years,” Lee said.

Recent developments saw SK biopharmaceuticals establish a scientific advisory board comprising accomplished physicians and experts across clinical, diagnostic, therapeutic, and drug development fields. The advisory board will collaborate to expand indications and pursue new patents as Cenobamate’s patent is approaching.