South Korea’s Celltrion is moving deeper into the commercial side of the global pharmaceutical business, expanding its direct sales network from European hospitals and public procurement systems into retail pharmacies.
The shift marks an important step for Celltrion, a South Korean biopharmaceutical group known for developing biosimilars, medicines designed to closely match already approved biologic drugs. Rather than relying primarily on outside distributors, the company is seeking greater control over pricing, supply and marketing in the overseas markets where its products are sold.
Celltrion Group Chairman Jungjin Seo will travel through Europe, North America and Japan this month to review that strategy as the company tries to convert strong product sales into a broader global distribution presence.
Seo will begin his trip in Paris on August 10 before visiting major European markets and Celltrion operations in the United States, Canada and Japan. The tour is scheduled to continue through the end of the month.
The central focus will be Europe, where Celltrion has already built direct sales operations serving hospitals and government buyers. The company is now extending that system into pharmacies, giving it a wider route to patients and more direct oversight of how its medicines are supplied and promoted.
That approach could become increasingly important as competition intensifies among biosimilar manufacturers. Developing an approved medicine is only part of the challenge. Companies must also secure contracts, manage regional pricing and ensure that products reach hospitals, pharmacies and other healthcare providers without disruption.
Celltrion has expanded its local infrastructure through the acquisition of French healthcare company Jifré and Swiss pharmaceutical distributor iQone. Seo plans to review whether those businesses and Celltrion’s other regional operations are working together effectively and whether sales strategies need to be adjusted for individual products and markets.
He will also meet local employees to discuss problems involving supply, pricing and marketing. Celltrion said information gathered during the trip would be incorporated quickly into management decisions, allowing the company to respond faster to regional market conditions.
The overseas push follows Celltrion’s strongest first half on record. The company reported revenue of $1.7 billion and operating profit of $540 million, increases of 40.8 percent and 97.4 percent from a year earlier.
Higher margin follow-on products accounted for about 65 percent of sales, led in part by the subcutaneous version of Remsima. The growing contribution from those products has given Celltrion more room to invest in the commercial networks needed to support further expansion.
The company expects large European tenders and year-end inventory purchases by healthcare institutions to support results in the second half. Seo’s trip is intended to ensure that Celltrion can turn that demand into lasting market share by coordinating product launches, supply plans and local sales operations.
For Celltrion, the next stage of growth will depend not only on developing and producing biosimilars, but also on controlling more of the path between its factories and the patients who use its medicines.
