Korean pharma and biotechs expand R&D investments

Investment surges among large companies

20 major pharma companies increased R&D spending by 13% YoY in H1

13 of 20 pharma companies increased investment...Celltrion invested the most

Big pharmaceutical companies including Celltrion, Samsung Biologics, Daewoong, Yuhan, etc. show a surge in investment...8 of the Top 10 highest-grossing companies expanded R&D investments

Listed pharma and biotech companies have expanded their research and development (R&D) investments in Korea this year.

 

3 out of 5 major pharmaceutical companies increased their R&D investments from last year to discover new candidates.

 

Pharmaceutical companies with larger sales have been more active in reinvesting in R&D.

 

According to the Financial Supervisory Service on Monday, the R&D investment expenses of 20 major pharma and biotech companies totaled at KRW 1.236 trillion in the first half of the year, up 12.7% from KRW 1.967 trillion a year earlier.

 

The data was compiled from the top 20 pharmaceutical companies by revenue that submitted semi-annual reports.

 

Ildong Pharmaceutical, which spun off its R&D subsidiary last year, was not included in the survey.

 

Thirteen of the 20 major pharmaceutical companies increased their R&D investment in the first half of the year compared to the same period last year.

 

Celltrion, Samsung Biologics, Daewoong Pharmaceutical, Yuhan Corp, Hanmi Pharmaceuticals, Dong-A ST, SK Biopharm, HK Inno.

 

N, Boryung Pharmaceutical, Dongkook Pharmaceutical, Huons, Dongwha Pharmaceutical, and Celltrion Pharm increased their R&D spending in the first half of the year compared to the same period last year.

 

Celltrion invested the most, KRW 206.7 billion in R&D in the first half of the year.

 

This is a 37.3% expansion compared to that in the first half of last year.

 

Celltrion has completed the development of biosimilars of Remicade, Enbrel, Mabthera, and Humira and is selling them in the U.S.

 

and Europe.

 

Celltrion has received approval for two biosimilars in Europe this year.

 

In May, the company received marketing authorization from the European Commission for its first biosimilar of Xolair, Omlyclo.

 

Xolair is an antibody biopharmaceutical agent used to treat allergic asthma, chronic rhinosinusitis with nasal polyps, and chronic idiopathic urticaria.

 

It generated global sales of about KRW 5 trillion last year.

 

Recently, Stekima, its biosimilar version of the autoimmune disease treatment Stelara, received European marketing authorization.

 

Stelara is an autoimmune disease treatment for plaque psoriasis, psoriatic arthritis, Crohn's disease, and ulcerative colitis developed by Janssen.

 

Celltrion has received 8 and 6 approvals for its biosimilars in Europe and the U.S., respectively.

 

Samsung Biologics' R&D expenditure in the first half of the year increased 20.2% year-on-year to KRW 177 billion.

 

Samsung Biologics' main business is contract manufacturing (CMO) and contract development (CDO) of raw materials for biopharmaceuticals.

 

Samsung Biologics' R&D organization provides technical support for the production of customer products and cell line process R&D at the Manufacturing Science And Technology (MSAT) laboratory, CDO Development Center, and Bio R&D Center.

 

The company’s R&D investments have also increased due to the increase in orders for biopharmaceutical contract manufacturing (CMO) and contract development (CDO) orders.

 

Samsung Biologics' R&D investment also includes Samsung Bioepis’ R&D expenses.

 

Since 2022, Samsung Bioepis has become a wholly-owned subsidiary of Samsung Biologics.

 

Samsung Bioepis has received a total of 4 biosimilar approvals in the U.S.

 

and Europe this year In April, Samsung Bioepis received marketing authorization for its Stelara biosimilar Pyzchiva in Europe.

 

In May, the company received approval for Opuviz, a biosimilar to Eylea used for macular degeneration.

 

Following the FDA approval of Pyzchiva in June, Samsung Bioepis received marketing authorization for the rare disease treatment Epysqli in July.

 

Epysqli is a biosimilar product of Soliris that was developed by Alexion in the US.

 

Among traditional pharmaceutical companies, Daewoong Pharmaceutical made the largest R&D investment of KRW 111.8 billion in the first half of the year.

 

This is an 18.3% rise year-on-year.

 

Daewoong is developing new drugs in areas such as ulcerative colitis, idiopathic pulmonary fibrosis, obesity, autoimmune diseases, and infectious diseases.

 

It is also conducting joint research with HanAll Biopharma, Daewoong Therapeutics, Oncocross, and D&D Pharmatech.

 

In 2021, Daewoong Pharmaceutical received approval for its gastroesophageal reflux disease treatment Fexclu, and in 2022, it successfully commercialized Envlo, its new SGLT-2 inhibitor class diabetes drug.

 

In the first half of the year, the company's R&D investment amounted to KRW 104.8 billion, up 20.6% year-on-year.

 

The company's increased R&D investment was driven by the adoption of promising technologies from biotech ventures.

 

In March, the company paid KRW 6 billion to acquire the technology of an anti-cancer drug candidate that inhibits SOS1 from Cyrus Therapeutics and Kanaph Therapeutics.

 

In Q2, the company paid KRW 3 billion in technology fees to biotech company J Ints Bio.

 

J Ints Bio is a biotech company that develops new anti-cancer drugs.

 

The company has also continued to increase clinical trial expenses for its new anti-cancer drug Leclaza.

 

The company has been conducting Phase III clinical trials on Leclaza since 2020.

 

Until the first half of this year, the company had invested KRW 111.2 billion in Leclaza’s Phase III trial.

 

Dong-A ST invested KRW 80.3 billion in R&D in the first half of the year, up 49.5% year-on-year.

 

The company’s clinical expenses for new drug development increased significantly.

 

DA-4505, its immuno-oncology drug candidate, was approved for Phase 1/2a clinical trials in Korea in November last year.

 

DA-4505 showed improved tumor suppression through preclinical studies compared to an AhR antagonist that is being developed by a multinational pharmaceutical company.

 

Also, the company completed its Phase III trial for DA-8010, a treatment for overactive bladder, in Korea in May.

 

However, DA-8010 did not show a statistically significant difference.

 

SK Biopharm, HK Inno.N, Boryung, and Celltrion Pharm increased their R&D investments by more than 10% in the first half of the year compared to the same period last year.

 

On the other hand, R&D investments by Handok, Hugel, GC Biopharma, Jeil Pharmaceutical, Daewon Pharmaceutical, Chong Kun Dang, and JW Pharmaceutical decreased compared to the same period last year.

 

The increase in R&D investment amongst pharmaceutical companies that posted high sales was greater.

 

The Top 10 sales companies - Samsung Biologics, Celltrion, Yuhan Corp, Hanmi Pharmaceutical, GC Biopharma, Chong Kun Dang, Daewoong Pharmaceutical, Boryung Pharmaceutical, HK Inno.N, and Dongkook Pharmaceutical - invested KRW 938.3 billion in R&D in the first half of the year, up 13.2% year-on-year.

 

Of the Top 10 companies by revenue, the investment volume of 8 companies other than GC Biopharma and Chong Kun Dang increased year-on-year.

 

It is analyzed that large pharmaceutical companies with experience in developing new drugs are actively investing in R&D to discover new candidates.