Samjin Pharmaceutical is accelerating its expansion into the central nervous system (CNS) market, focusing on treatments for dementia and epilepsy. The company aims to develop this sector as a key growth area in response to the rapidly increasing demand driven by an aging population, building on its existing cardiovascular treatment business.
According to market research firm IQVIA, the global CNS market is projected to grow from $154 billion in 2024 to $185 billion by 2029. The rise in the elderly population and the increasing number of patients with dementia and degenerative brain diseases are contributing to the rapid growth of related treatment markets.
Samjin Pharmaceutical's business structure is heavily weighted towards prescription-based specialty drugs, with 77.2% of its total revenue of 309.1 billion won coming from this segment in the first quarter of this year.
The core of its operations lies in the cardiovascular treatment sector. The company's flagship antithrombotic drug, Plavix, accounted for approximately 28% of total sales last year. Plavix is the first generic version of Sanofi's original cardiovascular drug, maintaining the top market share in the generic and improved drug categories.
Leveraging its competitive edge in the cardiovascular market, Samjin Pharmaceutical is now focusing on expanding its CNS portfolio. While the cardiovascular market is based on chronic disease patients, dementia and epilepsy treatments tend to have a high rate of long-term use and strong prescription continuity. Establishing a stable supply chain and prescription reliability could lead to significant long-term revenue potential.
The company's epilepsy treatment, Epilatam, consistently generates annual sales of around 4 to 5 billion won. Samjin has also successfully localized the active pharmaceutical ingredient (API) levetiracetam, which it previously imported entirely.
A company representative stated, "The primary goal of localizing the raw materials is to ensure 'high quality' and to build a 'stable supply chain.' It is significant in establishing a foundation to supply pharmaceuticals without disruption from external factors through strict quality control and a reliable supply system."
In February, the company launched the third-generation epilepsy treatment Brivaracetam, further expanding its CNS lineup. Brivaracetam is an improved formulation of Epilatam, and details regarding the localization of its raw materials are still being finalized as it is in the early stages of release.
Samjin Pharmaceutical is also intensifying its efforts to penetrate the Alzheimer's market. The company recently introduced Nutoin Duo, a combination drug for Alzheimer's disease that combines donepezil and memantine. This product simplifies the treatment regimen for severe Alzheimer's patients, reducing the burden of taking two separate medications and enhancing adherence for long-term users.
The company is also developing next-generation Alzheimer's treatments. In 2022, Samjin entered into a research and development agreement with biopharmaceutical company Aribio to collaborate on treatments for intractable and degenerative brain diseases. Samjin currently holds a 5.9% stake in Aribio, making it the second-largest shareholder.
Aribio's oral Alzheimer's treatment, AR1001, targets multiple mechanisms, including inhibiting neuronal cell death, improving cerebral blood flow, and removing toxic proteins. It is currently in the final stages of global Phase 3 clinical trials, and Samjin has secured exclusive production and sales rights in South Korea. Aribio has also attracted attention by signing an exclusive licensing agreement with China's Puxing Pharmaceutical for a global development, approval, production, and commercialization deal worth approximately 7 trillion won.
A Samjin representative noted, "The top-line results of the Phase 3 trial for AR1001 are expected to be announced around September to October. Since we have secured production and domestic sales rights, we plan to successfully launch in the domestic market through close cooperation with Aribio." The representative added, "We will work to strengthen our position in the market for treatments for degenerative brain diseases and dementia."
* This article has been translated by AI.
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