[Reporter's view] Creating a virtuous cycle for K-bio growth

The research and development (R&D) trend in the biopharmaceutical industry is focusing on new anticancer drugs.

 

The field is gaining interest, especially following the clinical success of Yuhan Corp's Leclaza (ingredient: Lazertinib) and HLB's rivoceranib.

 

In particular, most biotech companies in South Korea are confirming the clinical potential of drugs in combination with Keytruda.

 

Keytruda is an immune checkpoint inhibitor developed by MSD and a successful blockbuster medicine with over 30 indications in South Korea alone.

 

Keytruda's global sales this year are expected to amount to KRW 3.5 billion.

 

Almost all biotech companies in South Korea aim to out-license their technologies to MSD through clinical trials of combination therapy with Keytruda.

 

A combination therapy involving medicine with proven effects is highly likely to be commercialized.

 

However, R&D in the Korean industry seems to be focusing only on anticancer drugs for the purpose of out-licensing them to a big global pharmaceutical company.

 

To date, several biopharmaceutical companies in South Korea are reporting confirmation of the efficacy of their drugs in combination with Keytruda through preclinical trials or early-stage clinical trials.

 

However, there have been no reports of entering late-stage clinical trials, thereby nearing commercialization, or of outstanding out-licensing.

 

In addition to Keytruda, the next target of the biopharmaceutical industry in South Korea is Enhertu.

 

A second-generation antibody-drug conjugate, Enhertu (ingredient: trastuzumab deruxtecan), has demonstrated efficacy and is effective for breast cancer, gastric cancer, non-small cell lung cancer, and colorectal cancer.

 

The biopharmaceutical industry in South Korea is exploring the market for ADC anticancer drugs.

 

Even the long-standing pharmaceutical companies and the biotech industry have shown interest in ADC development.

 

Several companies have already begun clinical trials involving combination therapy with Enhertu.

 

It is common for Korean companies to pursue out-licensing as it allows them to secure funds for investments in other pipelines through out-licensing and provides opportunity to discover new drugs.

 

However, if the industry continues to chase after blockbuster new anticancer drugs, it will lead to a difficult system to develop new innovative drugs domestically.

 

Consequently, companies must explore new fields besides anticancer drugs.

 

Instead of pursuing a partner in a combination therapy involving a well-selling drug, they should explore a field with unmet needs to create various out-licensing opportunities.

 

The R&D costs in the biopharmaceutical industry in South Korea are incomparably smaller than those of global pharmaceutical companies.

 

A stable source of funds is essential to sustain a virtuous cycle.

 

Running a company by continuously developing competitive new drug candidates and successfully out-licensing is almost impossible.

 

As a result, it is important to have experience collaborating with other companies to secure Korean and Asian rights when discussing out-licensing agreements with a global pharmaceutical company.

 

Pharmaceutical companies can only sustain stable earnings through selling drugs.

 

The biopharmaceutical industry is one of the industries with a large gap between Korean and global companies.

 

The biopharmaceutical industry cannot benefit from good deals because it cannot produce good products and sell them cheaply.

 

Now, the biopharmaceutical industry in South Korea must consider challenging various fields and creating a system to profit from selling new drugs.

 

Clinical trials involving combination therapy containing new drugs are already supersaturated.