At the 81-year-old drugmaker JW Pharmaceutical, Director Lee Gi-hwan, the son of Chairman Lee Kyung-ha, was promoted to an executive role this year, formalizing fourth-generation management training. Director Lee oversees development strategy and commercialization. The role is seen as one that offers a panoramic view of JW Pharmaceutical's mid- to long-term future.
Born in 1997, the director joined the company in his 20s and learned operations on the ground. In business circles, some said, "It appears he is walking a similar path to his father, who also gained experience across research, sales, and marketing starting in his 20s." The chairman was promoted to chairman in his 50s and inherited management control.
◇ Like his father... chairman Lee's son receiving management training from his 20s
JW Pharmaceutical traces its roots to Joseon Jungoe Pharmaceutical, founded in 1945 by the late founder President Lee Ki-seok. It is credited with laying the groundwork for Korea's therapeutic drug industry by localizing intravenous solutions that had relied entirely on imports. Chairman Lee Kyung-ha is the eldest son of the late Honorary Chairman Lee Jong-ho, who was President Lee Ki-seok's son.
Director Lee Gi-hwan, the son of Chairman Lee, joined JW Holdings in 2022 as a management planning manager. In Jan., he moved to JW Pharmaceutical and became a director. It is a non-registered executive position. He is known for a calm demeanor and for quietly learning operations at the company. He has yet to appear at official events. A JW Pharmaceutical official said, "He heads a department within the development division that oversees development strategy and commercialization."
This mirrors how his father received management training. Born in 1963, Chairman Lee Kyung-ha also joined JW Pharmaceutical in 1986 and worked there for 40 years. He was dispatched to the U.S. drugmaker MSD and Japan's Chugai Pharmaceutical, and served as JW Pharmaceutical's international manager, head of marketing, and CEO of C&C New Drug Research Institute. He became president of JW Pharmaceutical in 2001, vice chairman of JW Pharmaceutical and JW Holdings in 2009, and chairman in 2015. A business community official said, "Like his father, Director Lee appears to have joined the company early to gain broad hands-on experience."
The current corporate governance chain runs from Chairman Lee Kyung-ha → JW Holdings → JW Pharmaceutical. As of the end of last year, Chairman Lee holds 28.43% equity in JW Holdings. JW Holdings is the largest shareholder of JW Pharmaceutical, owning 40.25% of its common shares and 4.36% of its preferred shares. JW Holdings also holds stakes in listed affiliates JW Life Science (42.98%) and JW Shinyak (30.72%).
Chairman Lee Kyung-ha also holds 0.58% of JW Pharmaceutical and 0.06% of JW Life Science. Director Lee Gi-hwan owns 4.37% equity in JW Holdings, 0.04% in JW Pharmaceutical, and 0.03% in JW Life Science. The chairman's two daughters, Lee Sung-eun and Min-kyung, also hold equity in JW Holdings (0.16% each) and JW Pharmaceutical (0.01% each). They are not known to be employed by the company.
◇ JW Pharmaceutical eyes hair loss treatment beyond hyperlipidemia drug
JW Pharmaceutical has recently focused on developing a topical hair loss treatment. The Ministery of Food and Drug Safety approved the phase 1 clinical trial plan for the hair loss candidate JW0061 last month. Phase 1 will soon begin at Seoul National University Hospital with 104 healthy adults.
Most existing hair loss treatments on the market have been oral. They focused on inhibiting DHT, a male hormone metabolite that hinders hair growth. The hair loss drug JW Pharmaceutical is developing binds to the GFRA1 receptor in hair follicle stem cells. It helps form follicles and grow hair. In prior animal studies, it improved hair growth speed by up to 39%.
While various hair loss treatments already exist, JW Pharmaceutical says it is the first to develop one that acts on the GFRA1 receptor. A Jungoe Pharmaceutical official said, "As we are developing the first new drug to introduce a new mechanism of action, there is no choice but for efficacy and toxicity evaluations to take somewhat longer," adding, "Once clinical trials are completed and commercialization succeeds, we can create added value."
JW Pharmaceutical posted consolidated revenue of 775.3 billion won and operating profit of 94.5 billion won last year. Those figures rose 8% and 15%, respectively, from a year earlier. Sales of its hyperlipidemia drug Livalo accounted for 25% of the total. Since its 2005 debut, Livalo has held its position in the market for more than 20 years.