Plans to go public on the KOSDAQ were first announced in March by Celltrion Healthcare, and last month the South Korean marketing and distribution firm raised one trillion Won ($888m) in an initial public offering (IPO).
Celltrion Healthcare span out from drugmaker Celltrion Inc. in 2010 but is still directly affiliated with its former parent. The firm purchases and stores biosimilar products made at Celltrion Inc.’s facilities in Incheon, Songdo which boast 140,000L of mammalian cell culture capacity, soon to increase to 310,000L.
It then distributes it to global biosimilar partners. For example, there are global supply deals in place for infliximab – reference product J&J’s Remicade – with firms including Pfizer, Napp Pharmaceuticals, Orion Pharmaceuticals, Egis, Hikma, Perrigo, Nippon Kayaku, and BioGaran .
A Celltrion Healthcare spokesperson told this publication a large proportion of the money raised through the IPO would be used to buy products from Celltrion Inc.
“We’re more focusing on purchasing products from Celltrion Inc. in the short term,” we were told.
“However, we’re going to expand the investments in diversifying product portfolio through license-in and expanding distribution network both directly and indirectly to become global top-tier distribution and marketing company in healthcare industry.”
The firm added the approximate breakdown of the trillion Won is as follows:
• KRW 485bn for general working capital, including purchase of biosimilar inventories
• KRW 360bn for broadening product portfolio, including through co development of new innovative biologic drugs and license-in
• KRW130bn to expand global distribution network
• KRW 20bn to repay existing debt