Hyaluronic acid (HA) filler specialist JETEMA is accelerating an expansion into the prescription drug (ETC) business, moving beyond its aesthetics-centered structure. It signed a definitive agreement with Indian drugmaker Zydus Lifesciences to introduce a GLP-1 obesity treatment generic and aims to use it to secure a new growth pillar.
On the 2nd, according to the pharmaceutical and biotech industry, JETEMA will sign a definitive agreement at the end of this month with Indian drugmaker Zydus Lifesciences for the exclusive introduction and commercialization in Korea of a GLP-1 receptor agonist generic of "semaglutide (Wegovy, Ozempic ingredient)."
As a follow-up to the memorandum of understanding (MOU) signed during the presidential economic mission schedule on Apr., JETEMA will oversee domestic approval, distribution and commercialization marketing.
JETEMA said, "We reached a final agreement on the contract terms at the pharmaceutical and biotech exhibition 'CPhI' held in Shanghai, China, last month." It did not disclose the contract size.
The company will begin this year the Ministery of Food and Drug Safety approval process, targeting a 2028 launch when the domestic patent on the original drug expires.
It plans to shorten the domestic approval timeline by using Zydus's global clinical data. Zydus received sales approval for a semaglutide generic from India's regulator (DCGI) early this year and began local sales in Mar.
The two companies are discussing expanding the scope of cooperation to an oral obesity treatment in the future. To that end, JETEMA secured a total of 63 billion won in funding through convertible bonds (CB), convertible preferred shares (CPS), and a sale-and-leaseback of its Pangyo headquarters.
A JETEMA official said, "The secured funds will be used to repay short-term borrowing fund and to build an ETC distribution network," adding, "We expect to push ahead with commercialization without additional external financing."
It added, "The semaglutide generic (based on the subcutaneous injection formulation) will be developed into a flagship product that accounts for 15%–20% of the company's annual sales within three years of launch."
The company plans to grow the ETC business as a new driver to ease its revenue structure concentrated in the HA filler 'Epitique' and to reduce reliance on the increasingly competitive domestic toxin market. Epitique is known to account for more than 60% of the company's annual sales.
Until the obesity treatment launches, an eye drop for presbyopia improvement will serve as the first commercialized item in the ETC business. The industry expects the related domestic market to grow to about 1.8 trillion won by 2035.
JETEMA is introducing an improved new drug version of 'Vuity,' developed by U.S. company AbbVie, and is currently seeking item approval from the Ministery of Food and Drug Safety. It is targeting a year-end launch and plans to develop it into a product responsible for about 10% of total annual sales after launch.
A JETEMA official said, "The improved new drug developed by a domestic pharmaceutical company showed superior efficacy compared with competing products in a phase 3 clinical trial targeting Koreans."
The existing HA filler business will be maintained and expanded. The company said, "We are expanding exports to China, entering the U.S. market, and expanding the Yongin plant," adding, "We plan to use the cash secured through this for investment in the ETC business."
There are challenges, however. The GLP-1 obesity treatment market is led by global drugmakers, so price competition among generics is expected to be fierce. Since the presbyopia improvement eye drop market is also in its early stages, whether actual prescriptions expand is expected to determine the success or failure of the business.
A JETEMA official said, "The semaglutide generic will secure price competitiveness based on Zydus's active pharmaceutical ingredient (API) synthesis technology and a reusable pen design," adding, "For the presbyopia improvement eye drops, we will use a direct sales organization and an ophthalmology-focused contract sales organization (CSO) and hold academic symposia to focus on gaining a foothold in the market."