K-Bio has surpassed 20 trillion won in technology exports for the first time last year and is now aiming for 30 trillion won this year. This growth reflects the increasing presence of South Korea's pharmaceutical and bio industry in the global market.
According to industry sources on July 19, domestic pharmaceutical and bio companies signed technology transfer contracts worth approximately 13 trillion won in the first half of this year alone. This figure already exceeds half of last year's total, and there is significant optimism in the industry that reaching 30 trillion won annually is achievable based on current trends.
Hanmi Pharmaceutical has been a key driver of this growth with a major contract, followed by Aribio, Oscotec, and Alteogen, which have also secured agreements with global pharmaceutical companies.
Specifically, Hanmi Pharmaceutical signed a technology transfer agreement worth $1.26 billion (approximately 1.87 trillion won) with the global pharmaceutical company Eli Lilly, reaffirming its ability to close large deals. This is considered the largest technology export deal in South Korea's pharmaceutical and bio sector this year.
Aribio is also gaining attention for its technology export achievements. The company recently secured a total of $60 million (approximately 90 billion won) in option fees from China's Puxing Pharmaceutical for its oral Alzheimer's treatment candidate, AR1001. The two companies had previously signed an option and licensing agreement for the global development and commercialization of AR1001 in May, with a total contract value of $4.7 billion (approximately 7 trillion won). Additionally, Puxing Pharmaceutical has recently entered into a strategic equity investment agreement with Aribio worth $27.5 million (approximately 41 billion won), continuing their collaboration.
Given that it is rare for domestic companies to challenge global Phase 3 clinical trials for Alzheimer's drugs, industry experts note that "completing late-stage clinical trials is an achievement in itself."
Oscotec and Alteogen are also recognized as symbols of the K-Bio technology export trend. Oscotec transferred its autoimmune disease treatment candidate, cebidoplenib, to the U.S. biotech company Agios for a total of $665 million (approximately 1 trillion won).
Alteogen successfully completed two technology exports in the first half of this year alone. In January, it signed a drug development contract with GSK's subsidiary Tesaro for $265 million (approximately 400 billion won) using its ALT-B4 platform, followed by a contract with U.S. Biogen in March worth up to $549 million (approximately 820 billion won).
The series of contracts by these companies demonstrates that the competitiveness of South Korean drug candidates is translating into actual transactions.
There is also a notable movement towards directly conducting activities beyond technology transfer. For instance, Rigakem recently secured a direct investment of 500 billion won from the National Growth Fund, establishing a financial foundation to conduct late-stage clinical development for its antibody-drug conjugate (ADC) new drug. Aribio is also laying the groundwork to directly challenge commercialization by conducting the global Phase 3 trial for AR1001.
In the past, it was common for companies to transfer development risks to global big pharma after technology transfer, but now some companies are taking steps to directly manage late-stage clinical trials and commercialization.
The government is also strengthening policy support with the goal of transitioning from a "technology export powerhouse" to a "global new drug development country." This is based on the belief that more cases like Yuhan Corporation's lung cancer drug, Lurbinectedin, and SK Biopharm's epilepsy treatment, Cenobamate, which generate actual sales in the global market, need to be expanded.
However, the current structure of technology exports still faces limitations. Many contracts are made at the Phase 1 or 2 clinical stages, and the structure of transferring the costs and risks of late-stage clinical trials and approvals to global pharmaceutical companies remains entrenched.
Lee Seung-kyu, vice president of the Korea Bio Association, pointed out that "many bio ventures survive through technology exports" and warned that without new support measures, the global competitiveness of South Korea's bio industry could weaken in the face of rapid growth in countries like China, India, and Southeast Asia.
He further suggested expanding the application of a "success-based loan" system, where the government provides some funding as a loan, forgiving it in case of business failure, while requiring companies to repay principal and interest and pay special fees in case of success. He emphasized the need for continuous support from the Phase 1 and 2 stages to develop candidates that can enter Phase 3 trials.
According to industry sources on July 19, domestic pharmaceutical and bio companies signed technology transfer contracts worth approximately 13 trillion won in the first half of this year alone. This figure already exceeds half of last year's total, and there is significant optimism in the industry that reaching 30 trillion won annually is achievable based on current trends.
Hanmi Pharmaceutical has been a key driver of this growth with a major contract, followed by Aribio, Oscotec, and Alteogen, which have also secured agreements with global pharmaceutical companies.
Specifically, Hanmi Pharmaceutical signed a technology transfer agreement worth $1.26 billion (approximately 1.87 trillion won) with the global pharmaceutical company Eli Lilly, reaffirming its ability to close large deals. This is considered the largest technology export deal in South Korea's pharmaceutical and bio sector this year.
Aribio is also gaining attention for its technology export achievements. The company recently secured a total of $60 million (approximately 90 billion won) in option fees from China's Puxing Pharmaceutical for its oral Alzheimer's treatment candidate, AR1001. The two companies had previously signed an option and licensing agreement for the global development and commercialization of AR1001 in May, with a total contract value of $4.7 billion (approximately 7 trillion won). Additionally, Puxing Pharmaceutical has recently entered into a strategic equity investment agreement with Aribio worth $27.5 million (approximately 41 billion won), continuing their collaboration.
Given that it is rare for domestic companies to challenge global Phase 3 clinical trials for Alzheimer's drugs, industry experts note that "completing late-stage clinical trials is an achievement in itself."
Oscotec and Alteogen are also recognized as symbols of the K-Bio technology export trend. Oscotec transferred its autoimmune disease treatment candidate, cebidoplenib, to the U.S. biotech company Agios for a total of $665 million (approximately 1 trillion won).
Alteogen successfully completed two technology exports in the first half of this year alone. In January, it signed a drug development contract with GSK's subsidiary Tesaro for $265 million (approximately 400 billion won) using its ALT-B4 platform, followed by a contract with U.S. Biogen in March worth up to $549 million (approximately 820 billion won).
The series of contracts by these companies demonstrates that the competitiveness of South Korean drug candidates is translating into actual transactions.
There is also a notable movement towards directly conducting activities beyond technology transfer. For instance, Rigakem recently secured a direct investment of 500 billion won from the National Growth Fund, establishing a financial foundation to conduct late-stage clinical development for its antibody-drug conjugate (ADC) new drug. Aribio is also laying the groundwork to directly challenge commercialization by conducting the global Phase 3 trial for AR1001.
In the past, it was common for companies to transfer development risks to global big pharma after technology transfer, but now some companies are taking steps to directly manage late-stage clinical trials and commercialization.
The government is also strengthening policy support with the goal of transitioning from a "technology export powerhouse" to a "global new drug development country." This is based on the belief that more cases like Yuhan Corporation's lung cancer drug, Lurbinectedin, and SK Biopharm's epilepsy treatment, Cenobamate, which generate actual sales in the global market, need to be expanded.
However, the current structure of technology exports still faces limitations. Many contracts are made at the Phase 1 or 2 clinical stages, and the structure of transferring the costs and risks of late-stage clinical trials and approvals to global pharmaceutical companies remains entrenched.
Lee Seung-kyu, vice president of the Korea Bio Association, pointed out that "many bio ventures survive through technology exports" and warned that without new support measures, the global competitiveness of South Korea's bio industry could weaken in the face of rapid growth in countries like China, India, and Southeast Asia.
He further suggested expanding the application of a "success-based loan" system, where the government provides some funding as a loan, forgiving it in case of business failure, while requiring companies to repay principal and interest and pay special fees in case of success. He emphasized the need for continuous support from the Phase 1 and 2 stages to develop candidates that can enter Phase 3 trials.
* This article has been translated by AI.
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