SEOUL - South Korea's leading biosimilar companies such as LG Life Sciences, Celltrion and others are increasingly wary of Samsung Electronics' ongoing talent search for research and development experts as the company prepares to make its debut in the blooming biosimilar business.

Industry officials say about 10 biosimilar R&D experts from leading biopharmas including LG Life Sciences have been recruited by Samsung, which sees the potential market of biosimilars and is moving beyond its traditional territory of electronics products.

LG Life Sciences spokesperson Park Chul-ha told PharmAsia News that his firm's key senior biosimilar expert was snatched up by Samsung recently.

"Executive Kim Kyu-Don quit LG Life Sciences in February, and we assume that he moved to Samsung Electronics," Park said. "Kim, who had worked for LG Life for 20 years, was one of our key 20 biosimilar R&D experts with doctorates."

Kim's resignation came at a time when Samsung Electronics ran a public notice in mid February that it would hire experienced biopharma, life engineering and stem cell experts.

Assuming that Samsung would need about 50 experts by the end of this year, industry sources say the company would likely be aggressively recruiting more talent in coming months in addition to the 10 experts it has hired so far.

A Samsung Electronics spokesman admitted to "man-hunting" practices, but refused to provide any details.

Return Of Ex-Chairman Lee Could Accelerate Samsung's Biosimilar Entry

The bid by Samsung Electronics to lay a firm foundation in the biosimilar business has been in part accelerated by a set of friendly gestures from the government, which sees the potential for the local biosimilar industry to grow faster and stronger if led by the country's financially-strong big companies such as Samsung.

Industry watchers say the recent return of the convicted ex-Samsung Group Chairman Lee Kun-hee as the chairman of Samsung Electronics - less than two years after he stepped down to face charges for financial wrongdoing - could add more momentum to the electronics giant's venture into biosimilars.

The return of 68-year-old Lee was widely expected after he was granted a presidential pardon last year despite being convicted of tax evasion.

A key affiliate of South Korea's leading business conglomerate Samsung Group, Samsung Electronics is the leading blue-chip stock on the Korea Stock Exchange.

As the South Korean government accelerates its drive to get local producers of biosimilars globally competitive, the Ministry of Knowledge Economy is setting the stage for Samsung Electronics to become a giant in the emerging biosimlars market.

The ministry said it will invest KRW 9 billion ($7.5 million) by July 2010 to finance a biosimilar consortium headed by Samsung Electronics and the therapeutic antibody company ISU Abxis. This consortium will gear up to produce nine biosimilar products after the original patents expire (Also see "Korea Moves To Help Samsung Electronics Create Consortium in Biosimilars" - Scrip, 14 July, 2009.).

In addition to LG Life Sciences, Samsung might be tapping others armed with strong R&D manpower, including Hanwha Chemical and Celltrion.

However, Celltrion spokesman Kim Yong-joong told PharmAsia News that he thinks his company researchers are immune to Samsung's tactics.

"Because our workers are on one of the best employment conditions [in South Korea] in addition to stock options they are given, they wouldn't be easily tempted," Kim said. "I wonder who would leave Celltrion to work for a start-up company like Samsung Electronics?"

Celltrion said it is already developing nine blockbuster therapeutic antibody biosimilars and is preparing to launch three biosimilars in markets not protected with patent rights. The three products are copies of Roche's oncology agent Herceptin (trastuzumab), Johnson & Johnson's rheumatoid arthritis agent Remicade (infliximab) and Eli Lilly's and Bristol-Myers Squibb's oncology agent Erbitux (cetuximab) (Also see "Korean Celltrion Gears Up To Produce Biosimilar Herceptin, Remicade, Erbitux; Proposes Barter System In Developing Regions" - Scrip, 2 July, 2009.).

As part of its bid to increase global sales for a range of therapeutic antibody biosimilars, Celltrion inked a deal with Perrigo to market its products in Israel (Also see "Korea's Celltrion Cuts Deal With Perrigo To Sell Its Biosimilars In Israel" - Scrip, 24 March, 2010.).

Along with LG Life Sciences and Celltrion, Hanwha Chemical has also been beefing up its bio business. Its BIO Research Center is currently developing innovative antibody products to cure antoimmune diseases such as reumatoid arthritis and asthma.

Other Korean companies preparing to stake a claim in the biosimilar sector include Greencross Corp., Daewoong Pharmaceutical and Yuhan Corp.

- Peter Chang (p.chang@elsevier.com)

Korea's Samsung Electronics On Manhunt For Biosimilar Talent As Local Companies Keep Wary Eye On Competition

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