Big Pharma Flush with Cash from Obesity Drugs Sets Sights on RNA Therapeutics as Next Target

Big Pharma, Including Lilly, Pursues Successive Acquisitions and Technology Transfers
Korean Companies Olix, Argynomics, and ST Pharm Also Benefit

The clock in the global pharmaceutical and biotech market is rapidly ticking toward "RNA therapeutics" from the very start of the new year. Major pharmaceutical companies, having secured massive cash reserves thanks to the recent global boom in obesity and diabetes treatments, are now identifying RNA therapeutics as their next growth engine. Since last year, these big pharma players have been pouring astronomical sums-amounting to trillions of won-into acquiring technology. This year, a large volume of key clinical data resulting from these investments is set to be released, drawing significant attention.

According to industry sources on January 28, the aggressive M&A activity and technology transfer agreements by major pharmaceutical companies since the second half of last year are seen as a signal that RNA therapeutics have entered the mainstream market. In October last year, Novartis struck a "mega deal" by acquiring Avidity Biosciences, a company with RNA delivery technology targeting muscle tissue, for about $12 billion (approximately 17.226 trillion won). Once this acquisition, now in its final stages, is completed in the first quarter, Novartis will instantly secure a late-stage RNA pipeline. Bristol Myers Squibb also joined the fray in October last year by acquiring RNA-based therapeutics company Orbital Therapeutics for $1.5 billion (about 2.153 trillion won).

The reason big pharma is so focused on RNA is due to the limitations of existing drugs. Traditional antibody or compound therapies work by blocking disease proteins after they have already formed, which means symptoms can return if treatment is stopped, and many proteins are structurally difficult to target. In contrast, RNA therapeutics act at the mRNA (messenger RNA) stage-the blueprint for protein production-either fundamentally blocking or modifying the creation of the causative proteins.

Specifically, siRNA (small interfering RNA) directly degrades disease-causing mRNA, while ASO (antisense oligonucleotide) promotes degradation or alters gene processing by binding to mRNA. Conversely, if there is a protein deficiency, normal mRNA can be introduced to induce production, and "RNA editing" technology that directly corrects mRNA sequences is also reaching commercialization.

It is noteworthy that Korean companies are at the center of this major trend. Eli Lilly, which became the world's top biotech company by market capitalization with its obesity treatment Mounjaro, invested nearly 3 trillion won in Korean biotech technology last year. In February, Lilly signed a technology transfer agreement worth 910 billion won with Olix, securing the candidate MASH (metabolic dysfunction-associated steatohepatitis) therapeutic 'OLX702A.' This move recognized the advantages and scalability of Olix's proprietary RNA interference platform for local administration. Then, in May, Lilly signed a deal worth up to 1.9 trillion won with Argynomics to jointly develop gene-editing therapeutics using Argynomics' "RNA replacement enzyme" platform.

In the manufacturing infrastructure sector, ST Pharm has established itself as a global powerhouse. By internalizing the entire process-from raw material synthesis to mass production-in the oligonucleotide CDMO (contract development and manufacturing organization) sector, which is essential for RNA therapeutics, the company is responding to increasing global demand.

This year, the "report cards" for these technologies will be revealed. Argynomics plans to be the first in the world to verify the human efficacy of its RNA replacement enzyme technology through clinical results targeting hepatocellular carcinoma. Olix also faces the challenge of proving the value of its platform through clinical progress in the MASH pipeline transferred to Lilly.

An industry expert predicted, "This year will be the inaugural year to determine whether global big pharma's RNA therapeutics can be effective not only for rare diseases but also for cardiovascular, metabolic, and central nervous system diseases. If domestic companies can prove their competitiveness with actual patient data rather than just exporting technology, a quantum leap in corporate value will be possible."