Daewoong’s Bold Move: Entering the $185 Billion Biosimilar Market

Daewoong Pharmaceutical announced Tuesday its entry into the biosimilar market, marking a significant shift for the traditional Korean drugmaker as it seeks new avenues for growth.

The company has appointed industry veteran Hong Seung-suh to lead its biosimilar business division. Hong brings nearly two decades of experience to the role, having led biosimilar R&D and global commercialization efforts at Celltrion from 2002 to 2019.

“This move into biosimilars is a milestone for Daewoong Pharmaceutical, a company that has dedicated eight decades to improving health in Korea,” Hong remarked.

“Biosimilars have the potential to transform healthcare accessibility. By leveraging Daewoong’s established sales network and corporate drive, we aim to expand treatment options for patients worldwide.”

Biosimilars are biological products highly similar to existing reference biologics. These alternatives offer more affordable treatment options, potentially replacing more expensive drugs. Their shorter development cycles and higher approval rates compared to novel drugs make them an attractive proposition that balances risk reduction with improved cost-effectiveness.
According to analysts at IMARC Group, the global biosimilar market, which was valued at $26.5 billion last year, is projected to surge to $185.1 billion by 2033.

Daewoong’s biosimilar strategy involves strengthening its in-house development capabilities while actively pursuing strategic partnerships both domestically and internationally. The company plans to collaborate with other biosimilar players and contract development and manufacturing organizations (CDMOs) to broaden its product portfolio. Long-term goals include entering major markets such as Europe and the United States, with the ultimate aim of evolving into a global biotech powerhouse.

“Our extensive experience in drug development and commercialization, combined with our global partnership capabilities, uniquely positions us in the biosimilar market,” said Park Seong-soo, CEO of Daewoong Pharmaceutical. “We are poised to make significant progress through both independent and collaborative development efforts.”

“Rather than focusing on quick wins, we are committed to a systematic execution of our mid- to long-term strategy. Our goal is to emerge as a formidable player on the global stage.”