Journalist

Lee Hyo-jeong
  • Samchundang Pharm Faces Growing Doubts Over Block Deal, S-Pass Tech and Patent Rights
    Samchundang Pharm Faces Growing Doubts Over Block Deal, S-Pass Tech and Patent Rights Negative issues surrounding Samchundang Pharm have continued to spread, including controversy over a planned block deal by its controlling shareholder and questions about the substance of its technology and the structure of related agreements. The company moved quickly to contain the fallout, withdrawing the block-deal plan and outlining the competitiveness of its oral formulation platform, S-Pass, and its global partnership structure. But investors have said the company has not provided enough indicators or data to resolve doubts, including a lack of disclosed evidence supporting its core technology. With a dispute now also emerging over patent ownership, industry officials warn the issue could extend beyond one company and undermine confidence in South Korea’s broader pharmaceutical sector. According to the industry on April 8, Samchundang Pharm — once the top company by market capitalization on the KOSDAQ — is facing allegations of stock manipulation and criticism that the scope of patents tied to the S-Pass platform is unclear. Questions have grown as the company has not sufficiently disclosed pharmacokinetic, or PK, data, which is commonly viewed as a key benchmark for demonstrating drug effects. A separate dispute has also surfaced over ownership of a key patent. A media outlet reported the previous day that Summit Biotech, a Taiwanese company, filed the patent application for S-Pass, Samchundang Pharm’s drug-delivery platform. The report also argued it was unusual for an overseas company with no equity relationship to hold a core-technology patent. Samchundang Pharm rejected that claim, saying that while it does not hold an equity stake in Summit Biotech, ownership “belongs entirely” to Samchundang Pharm based on a comprehensive research-services contract under which it paid all research and development costs. As the controversy deepens, the pharmaceutical and biotech industry has increasingly viewed the situation as more than a single-company risk. In recent years, technology-export deals and platform-based companies have surged, and industry officials say there have been repeated cases of firms seeking to secure market trust without releasing core data. A pharmaceutical company official cited past cases, saying Alteogen — once No. 1 on the KOSDAQ — previously saw its share price plunge when its technology-export scale fell short of market expectations, and SillaJen was once pushed to the brink of delisting after a Phase 3 liver cancer trial failed. The official said the domestic market is vulnerable to confidence shocks that can quickly freeze investment sentiment across the sector. Some have also pointed to spillover into sector funds. As of April 7, the TIGER KOSDAQ150 Biotech exchange-traded fund posted a roughly 15% loss over the past week, fueling concerns that sentiment toward the domestic biotech industry is already weakening. Samchundang Pharm shares extended their slide. According to the Korea Exchange, the stock closed at 485,000 won on the day, down 6.55% from 519,000 won the previous session. A so-called “imperial stock” that had been eyeing the 1.2 million won level as of late last month has fallen to less than half that level in a short period.* This article has been translated by AI. 2026-04-08 17:33:55
  • U.S. Leads Global Biotech for 15 Years as China Gains; South Korea Expands CDMO Footprint
    U.S. Leads Global Biotech for 15 Years as China Gains; South Korea Expands CDMO Footprint The number of publicly listed biotech companies and biotech patent filings has continued to rise worldwide, with the United States holding the top spot for 15 years. With expectations that Asia led by China will expand, South Korean biotech companies are accelerating efforts to secure global production hubs, led by contract development and manufacturing (CDMO). Data released Tuesday by the Korea Institute of Science and Technology Information (KISTI) showed the number of biotech companies listed on stock exchanges worldwide rose to 2,787 in 2022 from 1,542 in 2009, an average annual increase of 4.68%. By country over the past 15 years from 2009 to 2023, U.S.-based companies accounted for the largest share at 28.86%, followed by China, India and Canada. South Korea ranked fifth with 5.18%. Companies listed on the Nasdaq made up the biggest portion at 18.46%, while firms listed on South Korea’s KOSDAQ and KOSPI accounted for 6.1%. The United States also led biotech patent filings over the past 15 years, with a 17.54% share, followed by China at 12.51% and Japan at 9.74%. China’s share more than doubled over the period and ranked first in 2021 at 15.5%. South Korea held fifth place at 4.99%. As the market remains heavily weighted toward the United States, some analysts expect Asia’s market — centered on China — to expand over the medium to long term. South Korean companies are responding with large investments, including in U.S. production facilities to build global footholds. Samsung Biologics, Celltrion and Lotte Biologics have been expanding U.S. manufacturing bases. Samsung Biologics said it completed the acquisition of GlaxoSmithKline’s plant in Rockville on March 31 local time. Celltrion said it completed the acquisition of a Branchburg, New Jersey, facility from Eli Lilly on Dec. 31 and began full operations in January. Lotte Biologics was the first among them to secure a U.S. production base, acquiring a 40,000-liter facility in Syracuse, New York, from Bristol Myers Squibb in 2022 and operating it. Combined, the three companies’ U.S. biologics production capacity totals 166,000 liters. An industry official said U.S. facilities would play key roles by easing tariff risks, strengthening responses to global clients and diversifying supply chains. Some have called for policy support, including expanded institutional investment and government incentives to encourage sustained capital inflows from overseas. In its report, KISTI said, “Especially for patent filings, a strategy appears necessary to respond to U.S. technological leadership and China’s quantitative expansion,” adding that companies should be guided to shift R&D toward “qualitative innovation” so they can move from quantity to quality in technology development. * This article has been translated by AI. 2026-04-07 18:34:01
  • Celltrion’s Truxima Tops U.S. Rituximab Prescriptions, a First for a Korean Biosimilar
    Celltrion’s Truxima Tops U.S. Rituximab Prescriptions, a First for a Korean Biosimilar Celltrion’s blood cancer treatment Truxima (rituximab) has ranked No. 1 in prescription share in the United States, the world’s largest pharmaceutical market, the company said. It is the first such milestone for a biosimilar from South Korea. According to IQVIA, a pharmaceutical market research firm, Truxima held a 35.8% share in the U.S. in February, based on prescription volume, placing it first. The result comes about six years and three months after Truxima entered the U.S. market in November 2019. It has become the most-prescribed rituximab product locally, surpassing the original drug and other major global pharmaceutical products. The performance gives Truxima the distinction of being the first Korean biosimilar to lead the U.S. market by share. Sales have also climbed. Truxima posted more than 300 billion won in revenue in North America last year, up more than 40% from the previous year, making it a key revenue driver for Celltrion. Celltrion said the business environment has improved after the U.S. government decided to exclude biosimilars from pharmaceutical tariffs. It added that its new drug Zymfentra (the U.S. product name for Remsima SC) is also set to be produced at its Branchburg plant in the United States, a structure the company said would largely shield it from tariff effects. Other products are also gaining traction. The autoimmune disease treatment Inflectra (infliximab) holds a 30.5% share in the United States, maintaining the highest prescription share among biosimilars, the company said. Zymfentra’s prescription volume in January rose more than threefold from a year earlier, supporting expectations for stronger synergy across the portfolio.* This article has been translated by AI. 2026-04-07 15:21:00
  • Korea Medical Sector Warns of Supply Risks as Middle East War Drags On
    Korea Medical Sector Warns of Supply Risks as Middle East War Drags On The prolonged war in the Middle East is raising concerns that disruptions in raw materials and shipping could spill over into unstable supplies of medical products in South Korea. With early signs of shortages in medical disposables and pharmaceutical packaging, hospitals and pharmacies are stepping up vigilance. Industry officials said the conflict has made supplies of petrochemical feedstocks such as naphtha and bunker fuel less reliable, disrupting production of drug packaging and medical consumables. Naphtha is a key material for PVC and plastic pill bottles, IV and injection containers, and dispensing paper used for prescriptions. A pharmaceutical distribution official said volatility in raw material prices and uncertainty in ocean freight rates have led some suppliers to adjust shipments. Another pharmaceutical company official said there has not yet been major disruption to production and packaging lines, but added the company is closely watching the situation as the war drags on. Hospitals are already hearing talk of price increases for medical disposables. Suppliers of single-use items such as syringes, needles and sanitary gloves are said to be considering price hikes of about 10% to 20%. An official at a major hospital said suppliers began discussing price adjustments as early as last month, adding that the industry expects prices could rise in the first half of the year. Concerns are also spreading to neighborhood pharmacies, which rely on steady supplies of packaging materials such as dispensing paper, roll paper, dosing bottles and plastic pill containers. Some packaging firms have been partially controlling volumes or delaying deliveries since March, according to industry sources. A pharmacy owner in Seoul’s Jongno district, identified only as A, said any disruption in packaging supplies would immediately make it difficult to dispense and package medicines. Some pharmacies are also showing signs of stockpiling. A wholesaler said orders for dispensing paper and plastic pill containers have increased over the past month or two compared with usual levels, attributing the rise to growing anxiety. The government plans to inspect distribution, pricing and supply chains to prevent broader instability in supplies of medical products and medicines. The Ministry of Food and Drug Safety and the Ministry of Health and Welfare said they will update their response manual for drug and medical device supply and take strong action against market-disrupting practices such as hoarding. Related agencies said they are continuously monitoring supplies of medical disposables and pharmaceutical packaging and preparing stockpiling and alternative production plans for items expected to face disruptions.* This article has been translated by AI. 2026-04-07 15:12:00
  • Korea Pharma-Bio Briefs: Celltrion, SK Bioscience, Hugel, Alteogen, CHA Hospital
    Korea Pharma-Bio Briefs: Celltrion, SK Bioscience, Hugel, Alteogen, CHA Hospital Celltrion says U.S. drug-tariff risk eased; to expand local production Celltrion said Sunday that a U.S. Trump administration measure announced April 2 on “adjusting imports of pharmaceuticals and pharmaceutical ingredients into the United States” has effectively removed tariff-related impacts on its business. Under the measure, a 100% tariff will be imposed on imports of patented drugs and related ingredients that are not produced in the United States or are not covered by U.S. government drug-price negotiations. South Korea, however, is expected to face a 15% tariff on pharmaceuticals in consideration of existing trade agreements, Celltrion said. Celltrion said the move eliminates any sales impact on its biosimilar products in the U.S., allowing it to run sales and marketing strategies more steadily. It plans to build up a step-by-step local production base so products sold in the U.S. can be made at its Branchburg plant in New Jersey, as it responds to future biosimilar policy changes. For Zymfentra, an infliximab subcutaneous formulation sold in the U.S. as a new drug, the drug substance will be produced at the Branchburg facility, the company said, adding it has completed technology transfer for Zymfentra production. Celltrion said it ultimately aims to manufacture all products sold in the U.S. at local plants. SK Bioscience hires Ma Sang-ho as head of research support SK Bioscience said Sunday it has hired Vice President Ma Sang-ho, a research project management specialist in infectious diseases, as head of research support in its Bio Research Division. Ma earned a doctorate in pharmacy from Sungkyunkwan University and a master’s and bachelor’s degree in chemistry from Hankuk University of Foreign Studies, the company said. He has worked across nonclinical and clinical development projects for drugs and vaccines at organizations including the Korea Health Industry Development Institute, GC Green Cross and JW Pharmaceutical. SK Bioscience said Ma will help elevate its research and development capabilities based on his field experience and expertise. It said it has set up an integrated research management process under the research support office, including teams for research planning, bio regulatory management, nonclinical support and GCLP. The company said it plans to strengthen project management functions and open innovation, building support across the full cycle from research planning and regulatory response to nonclinical work and GCLP operations. It said the goal is to speed development and improve the completeness of its mid- to long-term pipeline while strengthening execution at each project stage. Hugel says it obtained ISO/IEC 27001 and 27701 information security certifications Hugel said Sunday it has obtained two international certifications for information security management: ISO/IEC 27001 and ISO/IEC 27701. ISO/IEC standards are jointly set by the International Organization for Standardization and the International Electrotechnical Commission. ISO/IEC 27001 sets requirements for an information security management system, while ISO/IEC 27701 extends that framework to personal information protection. Hugel said it first obtained ISO/IEC 27001 last year and has now passed a follow-up audit, demonstrating the stability and continued operation of its security management system. It said the new ISO/IEC 27701 certification brings its personal data protection system in line with global standards. “Information security and personal data management are becoming more important as we expand in global markets,” said Lee Sang-gyu, an executive director in Hugel’s compliance support division. He said the company plans to further develop security systems to global levels. Alteogen declares this year the start of ESG management, aims to build sustainable framework Alteogen said Sunday it has declared this year the first year of ESG management and will step up efforts to build and execute a sustainability framework aligned with global standards. The company said it has been building an organization-wide ESG system to respond proactively to major regulatory and disclosure changes, including the European Union’s Corporate Sustainability Reporting Directive and Corporate Sustainability Due Diligence Directive, as well as discussions on introducing domestic sustainability disclosure standards. Alteogen said it has created an ESG committee and a working-level consultative body, and formed a dedicated organization that includes specialists in policy, verification and environmental fields. It said it is establishing execution foundations across ESG areas, including a carbon-neutral roadmap based on science-based targets, response systems for CDP and EcoVadis, ISO-based environmental and occupational safety and health systems, and reporting frameworks based on GRI and ISSB standards. On the environmental front, Alteogen said it launched the “Alteogen Blue Action” campaign focused on biodiversity conservation. It said it plans to expand ecosystem conservation activities tied to local communities, employee participation programs, and efforts on resource circulation and carbon reduction in stages. In governance, Alteogen said it completed structural changes. It said it finalized the establishment of an audit committee at its regular shareholders meeting on March 31 and expanded the share of outside directors on its board to more than half. CHA Hospital to support infertility treatment for LG CNS employees CHA Hospital said Sunday it signed a memorandum of understanding with LG CNS at the infertility center of Magok CHA Hospital to cooperate on addressing South Korea’s low birthrate. Attendees included Han Se-yeol, head of the infertility center at Magok CHA Hospital; Yeo Un-pyo, administrative office director; Ko Young-mok, an executive director and chief human resources officer at LG CNS; and Kim Tae-sang, who is in charge of the smart city business, the hospital said. Under the agreement, the two sides will cooperate in areas including infertility treatment, fertility testing such as anti-Mullerian hormone level checks, and support for egg freezing, CHA Hospital said. The hospital said it plans to improve access to infertility treatment for LG CNS employees as part of efforts to address the low birthrate. CHA Hospital quoted Han as saying the group is working with domestic and overseas institutions to expand opportunities for infertility treatment and contribute to addressing the low birthrate. He said he hopes LG CNS employees can receive treatment more comfortably in an optimal environment, citing the facility’s accessibility in Magok.* This article has been translated by AI. 2026-04-06 16:54:06
  • SK Biopharm, Lotte Biologics, LG Chem, AriBio and GI Innovation Announce New Deals and Updates
    SK Biopharm, Lotte Biologics, LG Chem, AriBio and GI Innovation Announce New Deals and Updates SK Biopharm signs pact with Seoul BioHub to mentor drug-development startups SK Biopharm said Thursday it selected two promising central nervous system startups through an open-innovation program with Seoul BioHub and held a signing ceremony. The program is designed to strengthen the R&D capabilities of Korean startups by sharing SK Biopharm’s experience across the full cycle of global new-drug development. The company said it is the first concrete outcome of an agreement the two sides signed in November. The selected companies are Novorex and ThreeBrooks Therapeutics, which are developing treatments for degenerative brain diseases including Parkinson’s and Alzheimer’s, SK Biopharm said. Over the next year, the startups will receive support from SK Biopharm researchers on proof-of-concept work, clinical-entry strategy and responses to global regulatory requirements, among other steps in drug development. The partners also plan to open a collaboration center inside Seoul BioHub to deepen day-to-day cooperation and to look for additional startups for potential partnerships. SK Biopharm said it will expand support so domestic biotech startups can build competitiveness that meets global standards, drawing on experience gained developing the epilepsy drug cenobamate, sold in the U.S. as Xcopri. Lotte Biologics, Yeonsu District hold tree-planting and wildfire-prevention campaign Lotte Biologics said Thursday it held a joint campaign with Incheon’s Yeonsu District Office ahead of Tree-Planting Day on April 5, planting 250 trees and promoting spring wildfire prevention to address the climate crisis and help preserve local ecosystems. The company said about 400 people participated, including district officials, residents and its employee volunteer group, LB:Heart, as part of its ESG vision to build a “sustainable bio ecosystem.” Participants planted about 250 cherry trees around a neighborhood park in the Yeonsu Advanced Industrial Cluster. They also promoted wildfire-prevention awareness among residents and carried out a cleanup around the park, the company said. A Lotte Biologics official said the company will continue environmentally friendly activities to respond to climate change, expand community-focused social contributions and work to foster a healthy industrial ecosystem where talented domestic bio workers can thrive. LG Chem signs exclusive deal to sell Mochida’s endometriosis drug Dinagest in Korea, Thailand LG Chem said Thursday it signed an exclusive sales agreement with Japan’s Mochida Pharmaceutical for Dinagest, an endometriosis treatment, covering South Korea and Thailand. Dinagest is an oral progestin containing dienogest and is widely used as a key drug for hormone-dependent women’s diseases, including endometriosis, the company said. LG Chem said Dinagest is the only product in Japan’s market for the same ingredient to have shown treatment benefits in clinical trials not only for endometriosis but also for adenomyosis and dysmenorrhea. It currently holds more than 80% market share in Japan, the company said. Based on the collaboration, LG Chem said it plans to apply next year for domestic sales approval and aims to improve access to treatment for women’s diseases by expanding the drug’s use. “This introduction of Dinagest is an important starting point for expanding our existing infertility business into a women’s health business,” said Kim Seong-ho, head of LG Chem’s Specialty-Care business division. He said the company will continue to identify and develop products that provide practical help for women’s health management across life stages. AriBio names Seong Su-hyeon as co-CEO AriBio said Wednesday it appointed Vice Chairman Seong Su-hyeon as its new co-CEO. The company said CEO Jeong Jae-jun will continue to oversee R&D, global clinical trials and commercialization, and completion of new-drug development and scientific results, while Seong will lead overall management, business strategy and fundraising. The company is approaching key milestones, including the end of global Phase 3 trials for its oral dementia treatment candidate AR1001 and the release of topline results, AriBio said. The company said the co-leadership structure will help create a more stable and stronger foundation for growth by closely linking research and management. Seong is a co-founder of AriBio. He served as CEO from 2010 to 2019 and later, as vice chairman, led fundraising and the buildout of research infrastructure, the company said. AriBio said he also led development of the dementia electroceutical “Herzion” based on research data on degenerative brain diseases including AR1001, and played a key role in launching business lines such as the hair-loss solution “Teloact,” functional cosmetics and health supplements. “I will do my best until the final moment to deliver the world’s first oral dementia treatment,” Seong said. GI Innovation to present Phase 1 data on immuno-oncology drug at ASCO GI Innovation said Thursday it will present Phase 1 data for its investigational immuno-oncology drug at an international conference. The company said Phase 1 data for GI-101A was selected for a rapid oral abstract presentation at ASCO 2026, the annual meeting of the American Society of Clinical Oncology. ASCO is a major forum for sharing the latest clinical data in oncology, where new drugs are assessed based on real patient data. The meeting will be held in Chicago from May 29 to June 3, local time, the company said. GI Innovation said it plans to present the Phase 1 results for GI-101A. “The selection of GI-101A for an oral presentation at ASCO reflects recognition of its clinical potential and academic value at a prestigious conference,” CEO Jang Myeong-ho said. He said the presentation will clearly lay out the clinical significance of GI-101A and its strategic value as a combination therapy.* This article has been translated by AI. 2026-04-03 15:33:00
  • U.S. sets 15% tariff on Korean drugs, keeps biosimilars duty-free
    U.S. sets 15% tariff on Korean drugs, keeps biosimilars duty-free The Donald Trump administration has decided to impose a 100% tariff on pharmaceuticals not produced in the United States, while applying a separate 15% rate to South Korea. Biosimilars, a key Korean export, will remain duty-free. South Korea’s pharmaceutical and biotech industry said the decision eases uncertainty, but warned that companies still need global strategies as supply chains shift. President Donald Trump signed a proclamation on April 2 (local time) imposing a 100% tariff on pharmaceuticals not made in the United States. However, South Korea, Japan and Europe — which have separate trade agreements with the United States — will face a 15% rate, while the United Kingdom will be subject to 10%. Trump has repeatedly raised the prospect of drug tariffs since early this year, pressuring the industry. In August last year, he said rates could rise as high as 250%. Two months later, in October, he cited a 100% tariff, fueling uncertainty. The latest decision is seen in the industry as removing that tariff risk. Companies said generics and biosimilars were excluded from the tariff, and that Korean pharmaceuticals will receive treatment close to most-favored-nation status, giving them an edge over products from countries facing the full 100% rate. The Bioeconomy Research Center at the Korea Bio Association said the measure will impose a 15% tariff on Korean patented drugs that previously entered the U.S. duty-free, but the impact should be limited because biosimilars — a major export — will remain duty-free for at least one year. It added that contract development and manufacturing (CDMO) volumes produced in South Korea at the request of U.S. clients may be recognized as U.S.-made and potentially qualify for duty-free treatment, though final confirmation from the U.S. government is needed. Over the medium to long term, it said, diversification will be essential, including reshaping production and supply chains in the United States and expanding into non-U.S. markets. The U.S. government’s plan to reassess in one year the exclusions for generics, biosimilars and related raw materials could remain a burden, the industry said. A biotech industry official said companies were relieved after Trump’s tariff threats continued from last year, but added that firms must prepare thoroughly for the review in a year and pursue diversification as global supply chains are reorganized.* This article has been translated by AI. 2026-04-03 15:06:00
  • Korea Pharmaceutical and Bio-Pharma Association Holds Emergency Meeting on Drug Price Cuts
    Korea Pharmaceutical and Bio-Pharma Association Holds Emergency Meeting on Drug Price Cuts The Korea Pharmaceutical and Bio-Pharma Association said it will focus on limiting the impact on the industry from the government’s drug pricing system overhaul.  The association said it held an emergency meeting of its board on April 2 to discuss a response plan to the overhaul, which was recently approved by the Health Insurance Policy Deliberation Committee. The government last month announced the plan, including cutting prices for generic drugs to 45% of the original drug price, down from 53.55%.    At the meeting, the association agreed to draw up specific measures to reduce the hit from the price cuts. It said it will compile member companies’ questions about the overhaul to reduce uncertainty in the field. It also plans to hold two briefings for member companies this month, one online and one in person. The association said participants also agreed that the response should include a close review of strengths and weaknesses in the domestic pharmaceutical industry and industry-led efforts to support sustainable growth. They also said the need is growing for steps such as research on industrial promotion policies, including drug pricing rules, measures to support industry growth, and structural improvements such as establishing a sound order in pharmaceutical distribution. The association said it is also considering converting its emergency task force into a consultative body to discuss the industry’s sustainable development. It plans to hold a full meeting on April 14 at the association auditorium with representatives of participating groups in the “Emergency Task Force on Drug Pricing System Reform for Industry Development.” If the consultative body is launched, it is expected to help identify and deliver key agenda items for a future public-private consultative group involving the Ministry of Health and Welfare and the industry, the association said.  The association said the April 14 meeting is also expected to gather a wide range of views on setting the agenda for the public-private group, proposals to the government, industry innovation and advancement, and ways to establish a sound distribution order.* This article has been translated by AI. 2026-04-02 17:42:00
  • LG Chem Licenses Frontier Cancer Drug Candidate Targeting p53 Y220C Mutation
    LG Chem Licenses Frontier Cancer Drug Candidate Targeting p53 Y220C Mutation LG Chem said April 2 it has signed a global exclusive license with U.S.-based Frontier Medicines to develop and commercialize the cancer drug candidate FMC-220, which is nearing entry into a Phase 1 clinical trial. Under the deal, LG Chem will lead development and commercialization worldwide excluding China. The company will pay Frontier an upfront payment, along with additional development and commercialization milestone payments and separate sales royalties. FMC-220 is a p53 Y220C activator designed to restore the normal function of p53, a tumor-suppressor protein, by acting on the Y220C mutation among multiple p53 mutations. The p53 Y220C mutation is found in about 1% to 3% of all cancer patients and is considered an important treatment target. However, it has been viewed as an “undruggable” target because of structural constraints that have made drug development difficult. LG Chem said FMC-220 is designed as a covalent drug, meaning it binds irreversibly to its target. The company said this could allow more stable binding than noncovalent approaches and help sustain the drug’s effect longer. Frontier said preclinical results showed strong anti-cancer efficacy and durable responses even at low doses, and that anti-tumor activity was maintained in tumor models with co-mutations in KRAS, suggesting broader potential use across patient groups. LG Chem said it will initially develop the drug for ovarian cancer, where the p53 Y220C mutation is relatively more common, and plans to expand development to other cancers with the mutation. The company plans to recruit patients with ovarian cancer and other solid tumors in the United States and South Korea and begin a Phase 1 trial within the year. “FMC-220 is an innovative approach in that it targets a genetic mutation for which treatment options are currently limited,” Son Ji-woong, head of LG Chem’s Life Sciences division, said. “We will work to verify the potential of a treatment option that can provide real help to many patients.”* This article has been translated by AI. 2026-04-02 13:00:00
  • Korean Drugmakers Diversify Into New Businesses to Offset Price Cuts, Supply Risks
    Korean Drugmakers Diversify Into New Businesses to Offset Price Cuts, Supply Risks South Korea’s pharmaceutical and biotech industry is accelerating diversification as a survival strategy amid drug price cuts and global supply-chain uncertainty tied to Middle East tensions. Companies are widening their portfolios beyond medicines, from health supplements and animal drugs to solar power and even car-wash operations. Industry officials said April 1 that several established drugmakers are adding new business purposes at shareholder meetings this season, positioning the moves as a way to find growth as price cuts make limits in the traditional drug business more apparent. Yuyu Pharma recently amended its articles of incorporation to add the manufacturing and sale of “animal quasi-drugs, quasi-drugs and health functional foods.” Animal medicines are seen as a potential steady earner as pet ownership rises and entry barriers are relatively low. The global pet market is projected to grow from $320 billion in 2022 to $493 billion in 2030, the report said. Health functional foods are also a key target. Despite intense competition, the domestic market reached 5.9626 trillion won last year, making it attractive for drugmakers seeking a stable cash generator outside direct drug-pricing regulation. Many companies have already entered with products such as probiotics and collagen, drawn by higher margins, the report said. Expansion into beauty and medical devices is also gaining attention. Anguk Pharm added “development and sales of plastic surgery-related formulations” and “development and sales of biomedical-related products” to its corporate purposes, aiming to strengthen its health care portfolio by tapping growing demand for cosmetic dermatology in an aging society. After acquiring health care company Dmedicorea, Anguk has broadened beyond prescription drugs into supplements, beauty and sleep-related businesses. A frequently cited success story is Dongkook Pharmaceutical’s cosmetics brand Centellian24, which built recognition by applying the concept of ingredients used in its wound treatment Madecassol to skincare products. Some forecasts say the company could join the ranks of firms with 1 trillion won in annual sales on the back of growth in its health care business. Some companies are moving into businesses far removed from their core. Daewoong Pharmaceutical added a “solar power generation business” through its annual shareholder meeting, a step the report linked to ESG management. The company is expected to pursue rooftop solar installations at factories to generate power and cut energy costs. With raw material prices rising amid Middle East instability, solar power is also expected to help reduce costs over the long term, the report said. Dong-A ST newly listed “car-wash operation” as a business, describing it as part of ESG efforts alongside employment for people with disabilities. JW Pharmaceutical added “investment, management advisory and consulting,” a move seen as aimed at strengthening investment and management support functions across affiliates. Still, some in the industry warn that new ventures could dilute drugmakers’ core capabilities in pharmaceutical research and development and sales. “The key question is whether these new businesses will connect to existing strengths and translate into real profitability, or whether they will reduce room for R&D investment,” one industry official said. 2026-04-01 19:33:24