"We will 100% replace existing insulin injections."
Jeon In-seok, CEO of Sam Chun Dang Pharm, said this at the annual shareholders meeting held on the morning of the 30th at the YBM Training Center in Hwaseong, Gyeonggi Province. Sam Chun Dang Pharm is developing an oral insulin and a generic of Wegovy, raising investor expectations. The company's share price jumped more than 380%, rising from 244,500 won at the close on Jan. 2 this year to as high as 1.18 million won intraday on the day. Its market capitalization exceeds 27 trillion won.
Jeon said, "As Sam Chun Dang Pharm has risen to No. 1 on KOSDAQ by market cap, many people are curious about our direction," adding, "The S-Pass platform technology, which has drawn market attention, is not simply about turning an injection that pierces the skin with a needle into an easy-to-take pill." He went on, "Conventional subcutaneous insulin travels through the bloodstream throughout the body before reaching the liver, but with the S-Pass platform technology, [insulin] is delivered directly to the liver without being broken down in the stomach," adding, "That means fewer side effects and no pain from needle sticks."
People with diabetes control their blood sugar with insulin. But because insulin is easily broken down by stomach acid, it has been administered by injection. Sam Chun Dang Pharm is developing an oral insulin using its own S-Pass platform technology. The method encloses insulin in a protective material to prevent breakdown by stomach acid and temporarily opens gaps between cells to enable absorption. If this technology succeeds, people with diabetes will be able to control their blood sugar with medication instead of injections in the abdomen or thigh. Sam Chun Dang Pharm applied for clinical trial authorization to the European medicines regulator on the 19th. Approval has not yet been granted.
Jeon said, "Because some patients have a fear of needles, doctors have prescribed insulin right before diabetes complications set in," adding, "If an oral insulin is developed, doctors will be able to prescribe insulin from the early stages of diabetes." He said, "Many big pharma companies have attempted oral insulin but have not succeeded," adding, "A red ocean that everyone jumps into is not our goal; you have to clear high barriers of development difficulty to dominate the market."
Sam Chun Dang Pharm is developing an oral generic of Wegovy. Earlier, it signed an exclusive distribution contract worth 50.8 billion won with a European pharmaceutical company for 11 countries and signed a sales contract with Japan's Daiichi Sankyo Espha.
Jeon said, "For oral semaglutide (the active ingredient in Wegovy), the key raw material price is $100–$200 per gram, but we secured it at around $20 per gram." He said, "With the pharmaceutical platform TrumpRX making it possible to buy obesity drugs cheaply in the United States, there are concerns about Sam Chun Dang Pharm's profitability and price competitiveness," adding, "Even if extreme price competition occurs due to cost reductions, profitability will not be damaged."
Jeon said, "We will stay the course without wavering to establish ourselves in the global market, moving beyond a domestic focus," adding, "We will prioritize shareholder interests and corporate value so that the fruits of growth return to shareholders."
About 500 shareholders attended the meeting. Dozens lined up to enter starting 30 minutes before the meeting began. Some shareholders sat on the floor to listen due to a lack of seats. Some also posed pointed questions about the company's future.
One shareholder asked, "If the competitiveness of the oral Wegovy generic lies in low cost, couldn't competitors pursue the same strategy?" A Sam Chun Dang Pharm official said, "The cost ratio is under 10%," adding, "There is no need to worry."
There was also a question about Jeon selling roughly 250 billion won worth of Sam Chun Dang Pharm shares. Earlier, Jeon disclosed a plan to dispose of 265,700 common shares of Sam Chun Dang Pharm in after-hours trading from the 23rd of next month to May 22.
Another shareholder asked, "With the share price expected to rise going forward, what is the reason for selling shares, and is there any plan for installment payment of taxes over years (yeonbuyennap)?" Installment payment over years is paying taxes in installments over several years. Jeon said, "Domestic gift tax rates are higher than overseas," adding, "The share sale is for personal reasons such as the size of taxes and the payment schedule, and is separate from the company's fundamentals."
Another shareholder asked, "The share price has exceeded 1 million won; is there any plan for a bonus issue?" A bonus issue is giving shares to shareholders without receiving money. Shareholders can hold more shares without spending money. A Sam Chun Dang Pharm official said, "Nothing has been finalized yet, but to pursue shareholder-friendly management, we are keeping all options open and reviewing them from multiple angles."
Some questioned, "Sam Chun Dang Pharm's research and development workforce is smaller than other corporations, so there is skepticism about the results achieved." As of the year-end business report last year, Sam Chun Dang Pharm had a total of 35 people engaged in research and development at the Central and Bio Research Institutes.
A Sam Chun Dang Pharm official said, "Facebook did not start with hundreds or thousands of people gathered; it began with a Harvard student trying to talk with a friend," adding, "For platform technology, what matters is how well you anticipate the times, not the size of the workforce." The official added, "Because there are parts we develop in collaboration with overseas researchers, [the 35] is not the whole number."
Sam Chun Dang Pharm posted 231.8 billion won in consolidated revenue and 8.5 billion won in operating profit last year. Some view the company—one that does not earn even 10 billion won a year—as seeing its share price soar on future expectations. Meanwhile, the meeting approved agenda items such as appointing former Korea Pharmaceutical and Bio-Pharma Manufacturers Association (KPBMA) Vice Chairman Jang Byung-won as an outside director and former Export-Import Bank of Korea Vice President Yoo Yeon-gap as an auditor.