Traditional Pharmaceutical Companies Turn to Digital Health as a New Growth Engine Beyond New Drugs

Traditional pharmaceutical companies are designating digital healthcare as a core business for the future and are expanding their business domains accordingly. They are partnering with healthcare technology companies to broaden their reach into data- and device-based medical services.

According to the industry on June 30, major pharmaceutical firms are working to restructure their businesses, viewing digital healthcare not as a mere supplementary tool but as a foundation for next-generation growth. Changes in the market environment are accelerating this shift, including changes in medical demand due to an aging population and the rise in chronic diseases, the government's policy to foster the digital health industry, and declining profitability compared to investment in research and development (R&D).

Daewoong Pharmaceutical is a representative example. Since last year, the company has been operating a digital healthcare ecosystem centered on its wearable-based biosignal monitoring platform, ThynC, with the goal of transforming into a "smart hospital solutions company." Daewoong Pharmaceutical is building an integrated system in collaboration with major hospitals that enables ECG (electrocardiogram) analysis, blood pressure and blood glucose measurement, and artificial intelligence (AI) analysis.

The company has introduced medical devices such as the wearable ECG patch "Mobicare" and the ring-type continuous blood pressure monitor "CartBP," and is expanding into a data-driven clinical environment by integrating AI-based voice recognition EMR automation solutions. Recently, it also launched a "generative AI-based clinical document automation" solution.

Dong-A ST is introducing the remote ECG monitoring device "HiCardi" to the domestic market through collaboration with Meju and is pursuing overseas expansion into countries such as Brazil. Recently, the company also began introducing the "Doctor Noon CVD" platform, which utilizes cardiovascular risk prediction technology based on retinal imaging, in partnership with AI healthcare startup Mediwhale.

Yuhan Corporation has recently entered the digital diabetes management market with its self-monitoring blood glucose device "YuhandangCheck." The company has also secured domestic distribution rights for the wearable ECG monitor "MemoPatch" and is accelerating the development of distribution-based digital health products.

All of these companies are taking a different approach from their traditional new drug-centered R&D. The digital healthcare sector has the advantage of shorter product development cycles and faster market response, making business transformation more agile and flexible. The rapid rise of the digital healthcare industry is a global trend. According to global market research firm IMARC, the digital health market is expected to grow from about $240 billion (approximately 327 trillion won) in 2023 to over $1.6 trillion (approximately 2,182 trillion won) by 2033. The compound annual growth rate (CAGR) is projected to reach 21%, which is six times higher than the average growth rate of the traditional pharmaceutical industry.

The government is also keeping pace. The Ministry of Health and Welfare is strengthening regulatory improvements and R&D support for industries related to digital therapeutics, medical AI, and telemedicine through its "Bio-Digital Health Global Hub Strategy."

The actions of leading domestic pharmaceutical companies such as Daewoong Pharmaceutical, Yuhan Corporation, and Dong-A ST indicate that the industry paradigm is shifting from "companies that sell drugs" to "platform companies providing health solutions." An industry official stated, "Digital healthcare is an area where pharmaceutical companies can best utilize their existing assets while also dispersing risk," adding, "It is expected to account for a significant proportion of future sales."