[Asia Economy Reporter Lee Chun-hee] The pharmaceutical, bio, and investment industries predominantly hold a pessimistic outlook that the pharmaceutical and bio industry will face more difficulties this year compared to last year. In particular, concerns about the difficulty of fundraising due to high interest rates and other factors were significant.
Kiwoom Securities announced the results of the "Pharmaceutical and Bio Industry Outlook Survey 2023" on the 3rd. The survey was conducted over two weeks from the 14th to the 18th of last month, with a total of 113 participants. Among the participants, 71% were industry workers in pharmaceuticals, biotech, and medical devices, while 20% were financial industry workers such as venture capital (VC) and institutional managers. By position, C-level executives including CEOs accounted for 47%, followed by executives (26%) and operational staff (20%).
Among the survey participants, 38% responded that the industry outlook for this year would be "more difficult than last year." Those who thought it would be similar to this year accounted for 33%, and only 29% believed it would improve.
More than 80% cited "fundraising" as the reason for their negative view. Concerns are widespread that the funding crunch, which began at the end of last year due to the global high interest rate trend and asset value decline, will intensify this year. Additionally, respondents pointed to "reduced government support and insufficient support policies," "difficulties in technology exports," and "challenges in overseas expansion due to the rising dollar" as concerns for this year.
On the other hand, those who expected the industry to improve this year cited the "announcement of clinical data" as the biggest positive factor. It is anticipated that the clinical trials prepared by the industry so far will produce concrete results, driving industry improvement. Other positive factors included "technology exports," "technological advancement and market development," and "active clinical activities due to the transition to the COVID-19 endemic."
Nevertheless, respondents expressed hopeful expectations that a "renaissance" in the domestic pharmaceutical and bio industry will come soon. Among respondents, 44% believed the renaissance would occur around 2025 to 2027, and 32% thought the revival period would be between 2024 and 2025. In total, 76% of respondents expected the industry to revive in about three years. However, survey participants also noted that for this to happen, "smooth fundraising" must be reestablished, along with industrial turning points such as the "launch of global blockbuster new drugs" and "increases in the number and amount of technology exports."
The most anticipated disease area and new drug trend this year were cancer (oncology) and ribonucleic acid (RNA), respectively. Brain diseases and autoimmune diseases followed in disease areas, while antibody-drug conjugates (ADC), new target immune checkpoint inhibitors, and bispecific antibodies attracted attention as new drug trends.
Researcher Heo Hye-min of Kiwoom Securities stated, "What the domestic pharmaceutical and bio industry ultimately needs to leap forward once again is funding injection and government support," adding, "For companies that have been sorted out, smooth funding injections should be made to enable active research and development (R&D) and talent acquisition. Therefore, fostering the industry requires active government support for industrial growth and flexible regulatory easing."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
