Brexit raises uncertainty for Korean pharma firms

[THE INVESTOR] In wake of Britain’s decision to leave the European Union, some Korean pharmaceutical companies are concerned about the fallout that will affect their business in Europe. 

Some industry officials said the Brexit’s impact on Korean pharma companies will not be as severe as they already have a large domestic market. However, for some companies that have already entered Europe or are waiting to do so, including Celltrion and Samsung Bioepis, it can take some toll on them. 

Both Celltrion(Chairman Seo Jung-jin) and Samsung Bioepis sell biosimilar products in Europe, under the certification from European Medicines Agency. 

Celltrion received a permit from EMA for its biosimilar Remsima in August 2013 and it began selling in February 2015. Samsung Bioepis received approval of its Enbrel biosimilar Benapali in January, and for its second biosimilar Flexabi in May. 

Insiders are concerned whether the current EMA certification will be approved in Britain in the future. Previously, when a drug receives approval from EMA, it only requires minor administrative process in each EU country before hitting the shelves. 

“If a Brexit is realized, pharmaceutical companies might have to adjust import and export contracts with the EU,” an insider in the industry was quoted as saying in a report.

By Ahn Sung-mi (sahn@heraldcorp.com)