Han BioPharma Ventures

Type: Public subsidiary of Han Group (KOSPI: 068270)
Founded: 2016
Headquarters: Seoul, South Korea
CEO: Dr. Park Jin-young
Market Cap: $96 billion (98.2M shares @ ₩1,270,500)
Revenue: $12 billion (2025)
Employees: 15,000
Mission: Dominate Asian biosimilar markets while maintaining Korean national presence

Overview

Han BioPharma Ventures exists for strategic reasons beyond profit. Created to satisfy Korean national pride, secure regulatory fast-tracks, and employ extended family members, it has evolved into a highly profitable biosimilar powerhouse. The company makes knockoff versions of competitors’ biologics and sells them across Asia at 70% discount while maintaining 55% profit margins.

Strategic Purpose

Why It Exists

  1. Korean National Pride: Dae-hyun Han needed a Korean success story
  2. Regulatory Fast Track: Korean government expedited approvals in exchange for domestic manufacturing
  3. Family Employment: Keeps Korean cousins employed and loyal
  4. Transfer Pricing: Tax optimization between US and Korean operations
  5. Asian Market Access: Cultural and regulatory advantages in Asia

Corporate Structure

Ownership

  • Han Group: 38%
  • Han Biologics: 15% (cross-ownership)
  • Public Float: 47%

Board Composition

  • Korean government relations experts
  • Former Samsung and LG executives
  • Han family members (3 seats)
  • Regional pharmaceutical leaders

Core Business

Biosimilar Portfolio

Current Products: - Generic versions of top 10 biologics - Focus on oncology and autoimmune - 70% price discount vs originators - 55% profit margins maintained

Manufacturing Excellence: - State-of-the-art facility in Incheon - 50,000L bioreactor capacity - Cost per gram 80% lower than originators - Korean government subsidies

Market Coverage

Primary Markets: - South Korea: 45% market share in biosimilars - Japan: Through Han-Mitsui partnership - China: Via local partnerships - Southeast Asia: Direct distribution - India: Manufacturing partnership

Financial Performance

Revenue Breakdown

  • Domestic (Korea): $4.5B (38%)
  • Japan: $3.0B (25%)
  • China: $2.5B (21%)
  • Other Asia: $2.0B (16%)

Profitability

  • Gross Margin: 65%
  • EBITDA Margin: 55%
  • R&D Spend: 8% (mostly process optimization)
  • ROE: 35%

Manufacturing Operations

Incheon Biopark

  • Size: 500,000 sq ft
  • Capacity: 100,000kg/year biologics
  • Employees: 5,000
  • Investment: $3B (50% government subsidized)

Technology Transfer

  • Process knowledge from Han Biologics
  • Shared quality systems
  • Cost optimization expertise
  • Regulatory filing support

Regulatory Advantages

Korean Fast-Track

  • 18-month approval vs 36-month standard
  • Guaranteed government hospital purchases
  • Preferential insurance coverage
  • Export promotion support

Regional Harmonization

  • Mutual recognition agreements
  • Simplified import procedures
  • Preferential tariff treatment
  • Government-to-government deals

Strategic Synergies

With Han Biologics

  • Technology and knowledge transfer
  • Shared R&D costs
  • Patent expiry intelligence
  • Manufacturing best practices

With Han Group

  • Transfer pricing optimization
  • Regional market intelligence
  • Government relations leverage
  • Family loyalty maintenance

Product Pipeline

Near-term Launches (2026-2027)

  • 5 biosimilar approvals pending
  • Next-gen manufacturing reducing costs 30%
  • Targeting $5B addressable market

Long-term Strategy

  • Entry into cell and gene therapy manufacturing
  • Expansion to Middle East and Africa
  • Contract manufacturing for global pharma
  • $20B revenue target by 2030

Leadership

Executive Team

  • CEO: Dr. Park Jin-young (former Samsung Bio)
  • COO: Kim Sung-ho (Han family cousin)
  • CFO: Lee Mi-young
  • CTO: Dr. Yamamoto Koji (from Han-Mitsui JV)

Family Involvement

  • 15 extended family members in management
  • Strategic board positions
  • Regional office leadership
  • Maintains family cohesion

Competitive Advantages

Cost Leadership

  • 80% lower manufacturing costs
  • Government subsidies
  • Economies of scale
  • Process optimization expertise

Market Access

  • Korean government support
  • Regional partnerships
  • Cultural understanding
  • Regulatory expertise

Quality Standards

  • Zero contamination record
  • FDA approved facilities
  • EU GMP certification
  • Japanese PMDA approval

Challenges

Market Dynamics

  • Increasing competition from India
  • Originator price cuts
  • Regulatory harmonization delays
  • Currency fluctuations

Strategic Tensions

  • Balancing family employment with performance
  • Managing government expectations
  • Cross-ownership scrutiny
  • Technology transfer restrictions

Future Outlook

Growth Drivers

  • Patent cliff creating opportunities
  • Asian market growth
  • Government support continuing
  • Manufacturing excellence

Strategic Priorities

  1. Maintain cost leadership
  2. Expand geographic coverage
  3. Enter complex biosimilars
  4. Develop CDMO capabilities