Korean pharmaceutical and biotech companies accelerate joining PSCI amid strengthened ESG efforts

PSCI logo. (PSCI website)

Korean pharmaceutical and biotech companies are increasingly joining the Pharmaceutical Supply Chain Initiative (PSCI), strengthening their compliance with international ESG (Environmental, Social, and Governance) standards.

PSCI is a nonprofit organization established in the United States in 2013, aiming to promote sustainable business practices and supply chain management standards in the global healthcare supply chain.

In Korea, SK Biopharm was the first to join PSCI in 2022. Currently, Samsung Biologics and Lotte Biologics are also undergoing the registration process.

Samsung Biologics has completed all procedures for PSCI membership and is awaiting the results, while Lotte Biologics aims to join after the completion of its Songdo plant in 2027.

As ESG management becomes increasingly emphasized worldwide, the importance of PSCI is growing.

Recently, Japan's major pharmaceutical company Kyowa Kirin also joined PSCI, reflecting the increasing participation of global companies.

PSCI's membership has grown from 50 at the beginning of 2022 to 83 currently, solidifying its status in the global healthcare industry.

The qualifications for PSCI membership include meeting at least one of the following four criteria:

Revenue from patented or proprietary medicines or medical devices accounts for more than 50% of the company's total revenue.

Revenue from medical products sold directly to consumers under the company's brand accounts for more than 50% of the company's total revenue.

The company manufactures and directly sells generic medicines and medical products.

The supplier provides a patented or branded component or ingredient.

An industry insider stated, "For domestic pharmaceutical and biotech companies aiming for global market expansion, joining PSCI is essential. In an era where ESG is being strengthened, joining PSCI will play a crucial role in building global networks and enhancing competitiveness."