K-Bio's Consecutive Technology Exports... Trillion-Won 'Jackpot'

Genexine Transfers Immuno-Oncology Technology
to Indonesian KG Bio
Up to KRW 1.2 Trillion Deal
Last Year's Industry Tech Export
Exceeds KRW 10 Trillion, Setting Record High

[Asia Economy Reporter Seo So-jeong] Pharmaceutical and bio companies are steadily achieving results, such as Genexine exporting its self-developed immuno-oncology technology to a Southeast Asian pharmaceutical company for 1.2 trillion KRW. Following last month's 2 trillion KRW technology export "jackpot" by GC LabCell, consecutive trillion-KRW technology exports have raised expectations for the pharmaceutical and bio industry.

On the 18th, Genexine announced that it had licensed its immuno-oncology drug under development, ‘GX-I7’, to KG Bio, an Indonesian subsidiary of Kalbe Farma, the largest pharmaceutical company in Southeast Asia. This technology export grants usage rights of GX-I7 to ASEAN countries, as well as regions including the Middle East, Australia, New Zealand, India, and Africa, with an upfront payment of 28 million USD (approximately 30 billion KRW).

Including future milestone payments for clinical progress, product approval, and commercialization, the total value could reach up to 1.1 billion USD (approximately 1.2 trillion KRW). The upfront payment and milestone fees are non-refundable, and separately, if sales of GX-I7 occur in the licensed regions, Genexine will receive a 10% royalty.

Developing into a blockbuster drug... Collaboration with global partners

Seong Young-cheol, CEO of Genexine, said, "This technology transfer once again recognizes the value of GX-I7, a sustained-release interleukin-7 formulation that enhances T cells," adding, "Through active cooperation with global partners including KG Bio, we will develop GX-I7 into a globally recognized blockbuster drug."

After acquiring the technology from Genexine, KG Bio plans to apply for emergency use authorization if the efficacy of the ongoing Phase 2 clinical trial for a COVID-19 treatment in Indonesia is proven. Additionally, KG Bio will conduct various combination clinical trials with HLX10, an immuno-oncology drug introduced in 2019 from Henryu, a subsidiary of Chinese pharmaceutical company Fosun Pharma. Through this, they aim to confirm the value of GX-I7 and expand the market to India, Oceania, the Middle East, and Africa by leveraging Kalbe’s sales network, nurturing it as an immuno-oncology pipeline.

CEO Seong explained, "GX-I7 has demonstrated its value as an immuno-oncology drug through monotherapy or combination clinical trials targeting multiple cancer types," noting, "Last year, interim results from a Phase 1b/2 combination trial with the immune checkpoint inhibitor 'Keytruda' showed an objective response rate (ORR) more than five times higher than Keytruda monotherapy, and combination trials with Roche’s Avastin are also planned." Genexine is conducting combination clinical trials of this new drug substance with various anticancer agents such as Merck (MSD)’s Keytruda, BMS’s Opdivo, and Novartis’s Kymriah.

Yuhan Corporation, holding a 2% stake in Genexine, is also smiling broadly thanks to Genexine’s technology export jackpot.

Last year’s technology exports surpass 10 trillion KRW... record high

The pharmaceutical and bio industry is continuously achieving success in the new drug sector. Last month, GC LabCell, together with its U.S.-based affiliate Artiva Biotherapeutics, succeeded in a massive platform technology export deal worth over 2 trillion KRW. This 2 trillion KRW technology export is the third largest since technology exports in the pharmaceutical and bio industry began in earnest in 2015.

According to the Korea Pharmaceutical and Bio-Pharma Manufacturers Association, the total technology export volume of domestic pharmaceutical and bio companies last year reached 10.1487 trillion KRW, surpassing the 10 trillion KRW mark. The figures have set record highs every year: 484.6 billion KRW in 2015, 2.5277 trillion KRW in 2016, 1.3394 trillion KRW in 2017, 4.616 trillion KRW in 2018, and 7.497 trillion KRW in 2019.

Won Hee-mok, chairman of the Korea Pharmaceutical and Bio-Pharma Manufacturers Association, stated, "The active technology exports by domestic companies can ultimately be seen as a pendulum motion toward the birth of global new drugs," emphasizing, "Starting with major technology exports by GC LabCell and Genexine early this year, 2024 will be a year in which the pharmaceutical and bio industry takes a significant leap forward."