[Health Korea News] In 2024, Leclaza (lazertinib), the South Korean lung cancer drug developed by Yuhan Corporation and approved by the U.S. FDA, achieved a major milestone in its global expansion by securing reimbursement in Germany, Europe's largest pharmaceutical market. However, despite this triumph, Yuhan's stock price remains stuck at 98,500 won as of the 11th, failing for the second year to break through the psychological "100,000 won wall." Even as the KOSPI index has surged past 5,000 and is flirting with 6,000, Yuhan—South Korea's top pharmaceutical company—remains isolated, trapped in a state of stagnation. This is a humiliating report card for a company nearing its centennial anniversary in June.

Why does the market remain silent despite the string of victories for Leclaza? It is believed that the root cause is that the market is issuing a stern warning against a "hollow profit structure" and "complacent leadership." While the achievement of elevating Leclaza to a global drug is undeniable, the decision to opt for out-licensing rather than pursuing direct development to the end has returned as a painful misstep. In reality, even as global sales of Leclaza materialize, Yuhan must pay a staggering 40% of the milestones and royalties it receives from Janssen to the original developer, Oscotec. This is why industry insiders point to a "royalty trap," noting that "even with sales reaching 1 trillion won, Yuhan only pockets half." In such a structure, expecting a re-evaluation of corporate value is nothing more than "looking for a forest in a desert" (yeon-mok-gu-eo).

One must also scrutinize the illusion of "Open Innovation," which CEO Cho Wook-je—who recently succeeded in his re-election—touts as his trademark. Over the past decade, more than 500 billion won has been poured into biotech ventures, yet a "second Leclaza" to shake the market remains nowhere in sight. Instead, the chronic deficits of invested subsidiaries are dragging down consolidated performance and eroding profitability. With only loud "numbers" of investment and no tangible commercial results, it appears that CEO Cho's management strategy has focused more on "inflating appearances" than on genuine innovation.

Even more egregious is the attitude of Yuhan Corporation as it approaches its 100th anniversary. Today (the 11th), the company unveiled a new slogan and emblem and is focused on a massive "celebration preparation," including a campaign to collect old Antiphuramin tins from the public. In particular, spending tens of billions of KRW to renovate the old headquarters into a memorial hall and branding an emblem with Leclaza's colors feels less like a corporate tribute and more like a "self-deceitful" project intended to boast of CEO Cho's personal achievements and solidify his status.

While shareholders suffer from stagnating stock prices and low operating margins—excluded from the fruits of the KOSPI 5,000 era—one must ask if it is appropriate for management to focus all its energy on collecting relics and preparing exhibitions. The true value of a centennial anniversary is not found in flashy events or archival displays, but in shedding the reputation of a "wholesaler," improving profit structures, and presenting a vision for a breakthrough drug that surpasses Leclaza. CEO Cho and Yuhan's management must wake up to the fact that the number "98,500 won" serves as the true congratulatory speech for their 100th anniversary. Before collecting the past for self-praise, it must not forget that persuading the market with future value is the true 'Yu Il-han Spirit.'