This undated file photo shows the sign of South Korea’s pharmaceutical giant Celltrion Inc. (Image courtesy of Yonhap)
SEOUL, June 3 (Korea Bizwire) — South Korea’s leading pharmaceutical and biotech companies are increasingly shifting toward direct sales operations in overseas markets, betting that bypassing local distributors will yield greater long-term profits and stronger control over pricing and marketing.
Industry leader Celltrion has recently expanded its direct sales footprint in Europe, transitioning its Spanish operations last month from local distributor Confarma to a locally run subsidiary. This follows its late 2024 acquisition of Swiss pharmaceutical distributor ICON, signaling a broader push into self-managed European sales.
Celltrion has steadily replaced third-party partnerships with direct sales since launching its biosimilar Remsima in 2020. By 2023, the company had also converted its U.S. sales structure to a direct model.
In a recent earnings report, Celltrion cited enhanced pricing competitiveness and stronger in-market execution as key benefits of this strategy. Ha Tae-hoon, head of Celltrion’s European operations, credited direct engagement with customers as a central driver of the region’s robust performance, which now accounts for over half of the company’s total sales.
SK Biopharmaceuticals has also seen success with its direct sales strategy in the United States. Its epilepsy treatment, cenobamate (marketed as Xcopri), generated ₩133.3 billion ($100 million) in U.S. sales in the first quarter of 2025, marking a 47% year-on-year increase.
The company emphasized that direct engagement with healthcare providers has enabled more personalized, patient-centered strategies. It plans to launch a second CNS drug in the U.S. market later this year using its established infrastructure.
GC Biopharma, formerly GC Green Cross, is leveraging its U.S. subsidiary to directly sell Algluco, a blood plasma-derived therapy that received FDA approval in 2024. The company aims for $100 million in annual sales for the product.
This rendered image shows Samsung Bioepis’ headquarters office in Incheon, west of Seoul. (Image courtesy of Samsung Bioepis)
Meanwhile, Samsung Bioepis has adopted a direct sales model in Europe for Epysclis, its biosimilar version of Soliris, a rare disease drug originally developed by Alexion.
While the direct sales approach eliminates distributor fees and increases pricing flexibility, it also demands substantial upfront investment in local infrastructure and regulatory compliance. Industry insiders note that building networks with hospitals, clinics, and healthcare professionals in foreign markets is costly and time-intensive but can result in superior long-term margins and brand control.
Despite the challenges, South Korean pharmaceutical companies appear committed to this shift—viewing direct sales as essential for gaining autonomy, boosting operational efficiency, and staying competitive in the global biopharma arena.
Ashley Song (ashley@koreabizwire.com)
