R&D-rooted CEO maps out 40 biosimilars, 16 new drug filings by 2038
Succession Watch profiles the next generation of leaders shaping Korea’s key industries — from chaebol heirs to self-made entrepreneurs — spotlighting the new forces driving the nation’s growth. — Ed.
Celltrion’s immediate future appears promising. The leading Korean biosimilar company has reported its highest annual earnings to date, demonstrating the strength of its core business. However, a more significant challenge lies ahead. Seo Jin-seok, the 42-year-old CEO and son of founder and Chair Seo Jung-jin, must now demonstrate his ability to fuel Celltrion’s future growth by developing its new drug pipeline and expanding its global presence.
In January, Seo presented at the JPMorgan Healthcare Conference in San Francisco without his father for the first time. Addressing global investors and pharmaceutical leaders, he announced Celltrion’s entry into a new phase, with plans to launch over 40 biosimilars by 2038 and submit up to 16 investigational new drug applications during the same period – an ambitious plan that will define his leadership.
Built in the lab, not boardroom
Seo’s background is heavily focused on research and development. He holds a bachelor’s degree in animal resources from Seoul National University’s College of Agriculture and Life Sciences, as well as a master’s and doctorate in biological sciences from KAIST.
Seo joined Celltrion in 2014, becoming CEO of Celltrion Skincure in 2017. After being promoted to senior vice executive president in 2021, he led Celltrion’s product development unit. He was eventually appointed CEO of Celltrion and chairman of the board at the end of 2023, upon the merger of Celltrion and Celltrion Healthcare.
Industry experts say that Seo’s education and R&D experience make him an unconventional CEO.
“(Seo) lacks an MBA or experience in legal, investment banking, or financial sectors,” stated a biopharmaceutical industry source. “His expertise is rooted in R&D, which is crucial for Celltrion’s long-term success. New biosimilar products will determine Celltrion’s future, and Seo understands the new drug development process.”
Some investors have questioned Seo’s capabilities as a CEO who needs to increase revenue and profit, as he did not reverse Celltrion Skincure’s operating losses during his 3 1/2 years as CEO.
However, Seo appeared to learn from this experience, reflecting on his time at Celltrion Skincure during a meeting with reporters at the JPMHC.
“It was fun but challenging, and in some ways, I had the worst performance of my career,” he said.
“I know I’m not a sales expert. I’m a supporting player, and there are sales superstars. I needed to strategically select those superstars and give them the roles where I could have invested a little more to support them. I should have figured these points out, but when I went to Celltrion Skincure, I wanted to do everything myself. If I could go back, I would have picked a good sales head and given them some time.”
Seo smiled like a child when discussing new drugs in development, saying he enjoys studying new drugs and established a team to select biosimilar products.
“There are trends in new drug development,” he said. “I can’t say I understand every trend, but there are team members who do, and when they work together, the trends usually emerge.”
As Seo Jin-seok solidifies his position as Celltrion’s next leader, he faces a more complex challenge than just developing the pipeline: ownership.
Celltrion’s control structure is still firmly in the hands of his 68-year-old father, Chair Seo Jung-jin, who founded the company in 1991 and led its rapid growth. Chair Seo owns 98.13 percent of Celltrion Holdings, the private holding company that owns 24.7 percent of Kospi-listed Celltrion. He also directly owns 4.03 percent of Celltrion, or about 9.3 million shares. Celltrion controls 54.81 percent of Kosdaq-listed Celltrion Pharm.
In comparison, Seo Jin-seok owns just 5,864 shares of Celltrion – less than 1 percent – a small holding compared to other major shareholders.
The inheritance hurdle is significant. Chair Seo’s stake in Celltrion Holdings is valued at between 10 trillion won ($6.9 billion) and 11 trillion won. Under Korea’s 50 percent inheritance tax rate for estates over 3 billion won, roughly 5 to 6 trillion won could be owed in taxes. In 2023, Chair Seo stated publicly that succession would be “practically impossible” under the current tax laws.
One securities analyst pointed out that Seo Jin-seok’s small ownership stake could make him vulnerable if the company’s performance declines. “His limited stake in Celltrion could create a difficult situation if the company experiences financial difficulties,” the analyst said. “He will need to earn and maintain the trust of shareholders and investors to secure his position.”
Celltrion has implemented aggressive share buybacks and cancellations in recent years, which the company says are intended to increase shareholder value. While these actions increase Chair Seo’s relative ownership, market observers believe they do little to reduce the inheritance tax burden and are unlikely to significantly alter the succession situation.
Adding another layer of uncertainty is Seo Jin-seok’s younger brother, Seo Jun-suk, who is four years younger. He is currently in charge of Celltrion’s North American operations and recently joined his father at the opening of the company’s new biopharmaceutical plant in Branchburg, New Jersey. Like his brother, he has no meaningful stake in Celltrion.
hwkan
