Struggling with Lack of Experienced Personnel in New Drug Development
Small and Medium Firms "Worry About Talent Loss When Large Pharma Wins Contracts"
Desperate Measures Include Hiring Overseas Staff and Relocating Headquarters
#Mid-sized bio company CEO Mr. A is startled every time he hears news that a major domestic pharmaceutical bio company has succeeded in technology export or contract acquisition. This is due to concerns about workforce attrition. Mr. A said, "Whenever there are rumors about large companies establishing new research centers or reorganizing research teams, I become worried," adding, "The story that a neighboring company of similar size has been struggling with researchers resigning en masse since last year does not feel like someone else's problem."
#Mr. B, in his 30s and in his fifth year working at a bio venture, shared that "I am receiving more than twice as many job offers from headhunters compared to before," reflecting a clearly changed atmosphere. Recently, he received an offer from a well-known company but is not rushing to decide. Considering that the market value of bio research positions continues to rise, he plans to make a careful decision by weighing both his career and salary. Mr. B, who is participating in clinical research, hinted, "In this kind of environment, it seems possible to build experience at large companies like Samsung Bio and Celltrion and later start my own bio venture."
The domestic bio industry is facing increasingly severe manpower shortages. This is because, following the COVID-19 pandemic and Korea's emergence as a vaccine hub, the bio industry has rapidly grown, causing a surge in demand for core personnel. However, there is a severe shortage of sufficiently experienced talent, leading not only to recruiting experts from overseas but also cases where headquarters are relocated from provincial areas to Seoul to secure manpower. ▶Related article on page 3
Engchem Life Sciences recently declared its entry into the messenger ribonucleic acid (mRNA) vaccine contract manufacturing organization (CMO) business, which is currently the most spotlighted new technology in the vaccine field. The company has also ventured into the lipid CMO business, a vaccine raw material, and has managed to recruit Dr. Cecil Cherkinskin, a world-renowned authority in the vaccine field. However, aside from Dr. Cherkinskin, the company has not been able to properly organize related research and development teams. An Engchem Life Sciences official stated, "The mRNA vaccine business is a field with limited experience in Korea, so it is not easy to secure research personnel domestically," adding, "If business-related negotiations proceed and contracts are finalized, we will have no choice but to supplement personnel with the help of overseas developers."
New drug development company MedPacto relocated its headquarters from Suwon, Gyeonggi Province, to Seocho-gu, Seoul, in 2019. Despite considerable burdens such as rent, the reason behind the office move lies in manpower issues. CEO Kim Sung-jin of MedPacto said, "Even though Suwon is part of the metropolitan area, it was very difficult to find the desired talent," and noted, "Since moving to Seoul, the number of applicants has increased five to seven times."
The severe manpower shortage in the bio industry is mainly attributed to the limited number of professionals who have experienced key processes such as new drug candidate discovery, clinical trials, and new drug application (NDA) at a global level. Moreover, as domestic bio companies actively develop new drugs targeting the global market, the demand for personnel has surged. Lee Seung-gyu, Vice Chairman of the Korea Bio Association, explained, "There is a shortage of personnel not only in research parts requiring master's degrees or higher but also in all areas of new drug development such as global clinical trials, process development, and manufacturing (CMC)," adding, "The manpower shortage is expected to continue for the time being."
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