Hyaluronic acid (HA) filler specialist JETEMA is accelerating the expansion of its prescription drug (ETC) business, moving beyond its aesthetics-centered structure. The strategy is to secure a new growth axis by signing a definitive agreement to introduce a GLP-1 obesity treatment generic with global pharmaceutical company.
According to the pharmaceutical and biotech industry on the 2nd, JETEMA will sign a definitive agreement at the end of this month with global pharmaceutical company 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. 4, JETEMA will oversee domestic approvals, distribution, and commercialization marketing.
A JETEMA representative said, "We reached final agreement on the contract terms at the pharmaceutical and biotech exhibition 'CPhI' held in Shanghai, China, last month." The company did not disclose the size of the contract.
The company will begin the Ministery of Food and Drug Safety approval process this year, aiming for a 2028 launch when the original drug's domestic patent expires.
The two companies are also discussing expanding the scope of cooperation to an oral obesity treatment. To that end, JETEMA previously issued convertible bonds (CB) and convertible preferred shares (CPS) to secure about 30 billion won, and plans to secure an additional 33 billion won by selling and leasing back its Pangyo headquarters.
A JETEMA representative said, "The funds secured will be used to repay short-term borrowing fund and to build an ETC distribution network," adding, "We believe we can push ahead with commercialization without additional external financing."
The company added, "We aim to grow the semaglutide generic (based on the subcutaneous injection formulation) into a flagship product that accounts for 15%–20% of annual sales within three years of launch."
The company plans to cultivate the ETC business as a new growth engine to ease its revenue structure concentrated in the HA filler Epique and reduce reliance on the increasingly competitive domestic toxin market. Epique is currently known to account for more than 60% of the company's annual sales.
Until the obesity treatment is launched, 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 of "Vuity," developed by U.S. company AbbVie, and is currently pursuing Ministery of Food and Drug Safety item approval. The goal is a year-end launch, after which the company plans to develop it into a product accounting for about 10% of total annual sales.
A JETEMA representative said, "The improved new drug developed by a domestic pharmaceutical company demonstrated superior efficacy compared with competing products in phase 3 clinical trials 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, "The cash secured through this will be used as investment resources for the ETC business."
There are challenges, however. The GLP-1 obesity treatment market is led by global pharmaceutical companies, and price competition among generics is expected to be fierce. The presbyopia improvement eye drop is also in the early stage of the market, so whether prescriptions actually expand is expected to determine the business's success or failure.
A JETEMA representative said, "The semaglutide generic will secure price competitiveness based on active pharmaceutical ingredient (API) synthesis technology and a reusable pen design," adding, "For the presbyopia improvement eye drop, we will leverage a direct sales organization and ophthalmology-focused contract sales organizations (CSOs) and hold academic symposia to focus on establishing a foothold in the market."