Nearly 12 Trillion Won in Technology Transfers in the First Half
On Track to Surpass the 2021 Record of 15 Trillion Won
In the first half of this year, the total value of technology transfer deals in the domestic pharmaceutical and biotech industry nearly reached 12 trillion won. This marks the first time in four years since the record-breaking year of 2021 that technology transfer contracts exceeding 10 trillion won have been achieved within just half a year. There are even forecasts that the annual total could surpass 20 trillion won this year.
According to the Korea Pharmaceutical and Bio-Pharma Manufacturers Association on July 3, the scale of technology exports by domestic pharmaceutical and biotech companies in the first half of this year reached $8.76 billion (approximately 11.8785 trillion won). This figure far exceeds last year’s annual technology transfer total of $4.713 billion (about 6.3908 trillion won), and it is expected that the industry could easily surpass the all-time high of $11.574 billion (about 15.6943 trillion won) set in 2021.
The robust performance in technology transfer contracts was led by major domestic biotech companies such as Alteogen, ABL Bio, and OliX. These companies secured large-scale deals with big pharma (global pharmaceutical companies), which is seen as evidence of the "qualitative growth" of Korean pharmaceutical and biotech firms. In March, Alteogen exported its proprietary subcutaneous injection conversion technology, 'ALT-B4', to MedImmune (a subsidiary of AstraZeneca) for approximately $1.35 billion (about 2 trillion won). In April, ABL Bio signed a deal to transfer its blood-brain barrier (BBB) shuttle platform to GlaxoSmithKline (GSK) for $3.02 billion (about 4.1 trillion won). OliX also contributed to the first half’s technology export boom by transferring its metabolic disease treatment candidate 'OLX702A' to Eli Lilly for $630 million (about 910 billion won).
Given this momentum, industry observers believe that this year’s annual technology export volume is likely to surpass the previous record of 14 trillion won, and achieving 20 trillion won is also seen as a realistic possibility. This is because the technology transfer momentum is expected to continue into the second half of the year. Ligachem Bio is pursuing technology transfer of its main pipelines based on its proprietary antibody-drug conjugate (ADC) platform 'Conjuall'. D&D Pharmatech is currently negotiating with multinational pharmaceutical companies to export its metabolic dysfunction-associated steatohepatitis (MASH) treatment candidate 'DD01'. ABL Bio is also aiming for an additional BBB platform transfer contract with GSK.
The boom in technology transfer in the domestic pharmaceutical and biotech industry is attributed to the surging demand for technology from big pharma. There has been an increase in cases where multinational pharmaceutical companies are acquiring clinical-stage technologies from external sources to fill pipeline gaps caused by patent expirations. In addition, the technological capabilities of domestic biotech firms have advanced to a global level. Platforms such as Alteogen’s subcutaneous injection conversion technology, ABL Bio’s BBB shuttle platform, and Ligachem Bio’s ADC platform have all been recognized for their global competitiveness, leading to multiple technology export contracts. As more companies successfully enter global clinical trials and validate their technologies, the negotiating power of Korean firms in technology transfer deals is becoming even stronger.
An industry official commented, "With the technological needs of global big pharma aligning with the capabilities of domestic companies, this year’s technology exports are expected to be significant both in quality and quantity," adding, "Surpassing 20 trillion won annually is now a realistic goal."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
