[Reporter's View] New opportunities have emerged for K-Bio

following China's rapid emergence

In the global antibody-drug conjugate (ADC) market, the rapid rise of Chinese pharmaceutical companies is being noticed.

 

Just five to six years ago, China was considered a 'technology follower.' However, with massive capital and swift clinical development, it has quickly become a key player in the global market.

 

Chinese pharmaceutical companies are transforming the global landscape by establishing a comprehensive new drug development system, encompassing initial candidate discovery, clinical entry, late-stage trials, regulatory approval, and large-scale manufacturing.

 

These companies are rapidly securing an increasing number of approvals in the US and Europe, while also inking major technology transfers with global pharmaceutical giants.

 

The fact that Chinese companies can run their clinical and sales cycles on the strength of their domestic market alone is a point that Korean companies cannot easily match.

 

With rapid clinical trials based on thousands of patient populations and strong policy support from regulatory authorities, China's 'volume offensive' is demonstrating immense power.

 

In contrast, Korean ADC companies are exploring a different path.

 

LigaChem Biosciences made major technology transfer deals with global pharmaceutical companies by developing a pipeline of over 20 candidates.

 

Orum Therapeutics is accelerating its clinical development with a unique linker-payload technology.

 

ABL Bio aims to expand into the ADC field based on its bispecific antibody platform, while IntoCell explores new ADC targets using its novel platform.

 

In short, while China focuses on 'scale and speed,' Korea is emphasizing 'platform differentiation' with the global market in mind.

 

This differentiated new drug development strategy is not just a competitive dynamic; it also opens up opportunities for collaboration.

 

The production infrastructure and clinical networks of Chinese companies can serve as valuable resources for Korean firms.

 

Indeed, some Korean companies are already trying to enter the market by partnering with Chinese Contract Research Organizations (CROs) to accelerate clinical trials or by forming strategic alliances with Chinese investors.

 

Technology transfer also presents opportunities with Chinese pharmaceutical companies.

 

For instance, LigaChem Biosciences transferred its technology to China's Fosun Pharma, and the HER2-targeted ADC from that deal is currently awaiting approval in China.

 

However, collaboration with China doesn't come without risks.

 

China's volume offensive can quickly drive down the price of a specific modality.

 

With numerous antibodies, novel payloads, and diverse platforms entering the market simultaneously, competition is intensifying.

 

From the perspective of global pharmaceutical companies, they will inevitably weigh the 'cost-effectiveness' of Korea versus China.

 

If Korean companies' platform differentiation is not sufficiently proven, there is a significant risk that their technology will be viewed as a mere consumable commodity.

 

Therefore, Korean companies' strategies must become more sophisticated.

 

The companies need to secure differentiated data at each clinical stage, diversify partnerships with global pharmaceutical companies, and simultaneously manage a relationship of both 'competition' and 'collaboration' with China.

 

Ultimately, how well they solidify their position in the US and European markets will determine the success or failure of the Korean ADC industry.

 

China's rapid emergence in the pharmaceutical sector is both a threat and an opportunity for Korea.

 

It has too much potential for collaboration to be dismissed as just a competitor, yet the risk of market encroachment is too significant to be viewed solely as a partner.

 

The global challenge of the K-ADC will ultimately be judged by how it navigates this delicate balancing act.

 

It is a critical time to clearly understand that even if Korea falls behind in a war of attrition and speed compared to China, there are still opportunities in platform differentiation and strategic partnerships.