Seoul, May 15 Celltrion, a leading South Korean biopharmaceutical company, on Thursday said its business will remain largely unaffected by US President Donald Trump's executive order aimed at lowering drug prices to match those in other countries.
The order seeks to address a drug pricing system in which the United States pays significantly more for prescription medicines than other developed nations, Yonhap news agency reported.
"High US drug prices are not due to pharmaceutical companies, but rather the result of issues in the middle distribution process," said Celltrion Chairman Seo Jung-jin, in an online press conference.
Trump's pricing proposal primarily targets intermediaries, such as pharmacy benefit managers (PBMs) and private-sector insurers, that drive up costs for US patients, he noted.
Under the US PBM system, original biologic drugs are typically listed first in formularies, followed by the addition of two to three biosimilars through competitive processes. But the prices of biosimilars are often priced similarly to original drugs when prescribed in hospitals due to rebate issues involving intermediaries.
"If the intermediary distribution structure that includes PBMs is overhauled, biosimilar manufacturers would be able to negotiate drug prices directly with the government instead of going through intermediaries," he said.
"For Celltrion, this would generate more opportunities."
Seo said the executive order will not likely affect the company's business, as its biosimilars are already sold at deeply discounted prices in the US market compared with original drugs.
Regarding planned tariffs on pharmaceutical imports, the chairman also projected little impact on sales, noting that the company's flagship biosimilars -- Remsima, Herzuma and Truxima -- are not subject to import tariffs. The products are sold through Pfizer in the US market, and Celltrion holds sufficient inventories to supply the market for up to 21 months.
The Trump administration plans to announce item-by-item tariffs on pharmaceutical imports within two weeks.
"For continued growth, the company will also decide on whether to build a manufacturing facility in the US by the end of this year. We have already completed studies on 48 potential sites in eight US states for the project," Seo said, without elaborating.
He forecast Celltrion will post between 4.6 trillion won ($3.29 billion) to 4.7 trillion won in sales this year, up from 3.56 trillion won last year.
The company has significantly expanded its global biosimilar lineup, increasing the number of approved products from six to 11.
It aims to commercialise 23 biosimilars by 2030 and 40 by 2038, while planning to put 13 original drugs under clinical trials by 2035.
Celltrion currently sells its sole original drug, Zymfentra, in the US market for the treatment of self-immune diseases.
The global market for its planned 23 biosimilars is expected to nearly double to 261 trillion won by 2030 from 138 trillion won this year, according to the company.
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