As Celltrion Honorary Chairman Seo Jeong-jin returns to the management front, attention is focused on whether the noise around the company can be silenced.
On the 28th, Celltrion held the 32nd regular shareholder meeting at Songdo Convensia in Incheon. At the shareholders’ meeting on this day, directors were appointed, including the appointment of Jeong-Jin Seo as Executive Director, the appointment of Woo-Sung Ki as Executive Director, and the appointment of Hyeok-Jae Lee as Executive Director. approved as originally drafted, and Chairman Jeong-Jin Seo was named a registered director.
In addition, he was later appointed senior co-chairman by the board of directors, effectively returning to head the Celltrion group. Previously, Celltrion had predicted that Chairman Seo would return to management. Chairman Seo took on the role of ‘fire extinguisher’ to quell the management crisis amid the ongoing global economic crisis.
However, major and minor disturbances occurred during the shareholders’ meeting on this day, suggesting a goal of conflict between the company and shareholders. Some shareholders protested strongly that management should be held accountable for last year’s poor sales performance and stock price declines. There was also gossip between Celltrion CEO Ki Woo-sung and shareholders, who held the shareholders’ meeting.
Accordingly, Chairman Seo, who was given the right to speak after the appointment of an inside director, had time to answer questions from shareholders on site. As a result, the shareholders’ meeting was held for approximately 5 hours, more than the 2 hours scheduled. Shareholders who took the microphone demanded stronger IR communication, the sale of treasury stock, and the merger of the three group companies.
One shareholder pointed out the timing of Chairman Seo’s return and said, “The shareholders expressed their sincere gratitude at the time of Chairman Seo’s retirement.” Does it have any meaning?” he expressed his frustration.
In response, Chairman Seo announced that Celltrion Healthcare would earn 2.5 trillion in sales on a standalone basis this year. He then replied that the global crisis was expected to continue until next year, but that the company was considering mergers and acquisitions (M&A) as it had enough cash assets.
Chairman Seo said, “I had a meeting with all the subsidiaries in 27 European countries this year, and I also visited Portugal, where there are CMO facilities. We also checked our direct sales network in the United States,” he explained, “Even if our competitors adopt a dumping strategy (selling below cost) due to the economic crisis, we will not be dragged into it. “
Regarding the voices calling for the sale of treasury stocks, Chairman Seo said, “I am aware of the voices of shareholders who want to protect against the decline in stock prices by selling treasury stocks.” Doing so will greatly benefit the company.”
Regarding the current status of the merger between Celltrion, Celltrion Healthcare, and Celltrion Pharmaceutical Group, he said, “The Financial Supervisory Service (supervision) administrative procedures will be completed in July.” “The timing depends on the financial market environment. A fund needs to be created to buy stocks, but it is not easy to manage in the current environment.”
Regarding the delay in the approval of Humira biosimilar ‘Uplima (ingredient name adalimumab, development name CT-P17)’ in the United States, “The approval originally scheduled for December last year was delayed until around May, but it is not” The release plan in July has changed.” . The local production facility met all the requirements of the US Food and Drug Administration (FDA),” he said, elaborating on his concerns.
In particular, when it was noted that the development of ‘CT-P42’, a biosimilar from Eylea (ingredient: aflibercept), was delayed compared to competitors, the chairman said, “It is proceeding in accordance with the internal plan. In the case of Eylia biosimilars, consent is not the problem, but a patent solution is the key. We plan to confirm the release date soon.”
Regarding the acquisition of Baxter’s Biopharma Solutions Division, which was recently revealed through foreign media such as Reuters, “It is just one of the targets for the M&A review. He said he would do it when there was synergy,” he said. “The other side has made an offer first and asked for data. We haven’t even received the review data yet,” he said modestly.
In addition, in the complaints of shareholders that IR communication is not smooth, the chairman said, “After checking the system once, we will make a separate announcement through the website. We will improve the system from time to time to ensure smooth communication,” he replied, “if shareholders visit their homes in small groups, we will treat them to tea.”
