As of May, the technology export achievements of domestic bio corporations on the global stage have already surpassed last year's performance. Despite the tariffs and drug price reduction policies of the Trump administration in the United States, the demand for new drug technologies remains strong, and opportunities for technology transfer in the South Korean pharmaceutical and bio industry are expected to expand further.
According to a report from Kiwoom Securities on the 21st, as of the 19th of this month, the maximum cumulative contract size for technology transfers among major domestic pharmaceutical and bio corporations is $6.2 billion (8.65 trillion won), significantly exceeding last year's annual cumulative amount of $4.7 billion (6.55 trillion won).
In particular, four out of five technology transfer contracts signed by domestic corporations with overseas pharmaceutical companies this year are with global major pharmaceutical companies (big pharma), and among those, two are noteworthy as new partnerships.
◇Focus on technologies increasing efficacy and convenience
The largest technology transfer contract this year was with ABL Bio. Last month, the company transferred the technology for 'Grabbody-B,' which crosses the blood-brain barrier, to GlaxoSmithKline (GSK) in the United Kingdom, with a total contract size of $2.85 billion (4 trillion won).
The blood-brain barrier serves as a protective barrier that typically prevents foreign substances from entering the brain. Its dense and thick tissue presents a significant obstacle for drugs to reach the brain. Grabbody-B helps drugs cross the blood-brain barrier more effectively, allowing them to reach deep brain tissues with lower doses than existing drugs, thereby reducing the risk of side effects.
GSK plans to apply Grabbody-B to an antibody therapy currently in Phase 2 clinical trials for Alzheimer’s and Parkinson's disease patients, aiming to enhance efficacy. Since it is a foundational technology that increases the efficacy rather than the drug candidate itself, it may also be applicable to new drug development by other pharmaceutical companies in the future.
The technology export by Alteogen can also be viewed in the same context. In March, the company transferred its ALT-B4 platform technology, which changes intravenous (IV) formulations into subcutaneous (SC) formulations, to AstraZeneca (AZ) in the United Kingdom.
Unlike intravenous injections that require 4-5 hours at hospitals, subcutaneous injections can be administered by patients at home, providing greater convenience. Demand may increase if the same drug is reformulated as a subcutaneous injection. It is a technology that enhances the value of the drug.
The contract grants exclusive rights to use this technology for three types of cancer treatments. The total contract size is $1.35 billion (1.9 trillion won), with a signing fee of $45 million (64 billion won). This is the highest signing fee ever secured by Alteogen.
◇New concept therapies also receive big pharma calls
Therapeutic technologies that differ from traditional methods have also been receiving calls from big pharma. The first overseas technology transfer achievement this year came in January from domestic bio corporation Aimmed Bio, which signed a technology transfer contract with U.S. biotech company Biohaven for an antibody-drug conjugate (ADC) candidate 'AMB302.' ADC is a therapeutic technology that attaches drugs to antibodies to deliver them specifically to cancer cells.
AMB302 was jointly developed by Aimmed Bio and China’s Zai Lab. The target treatments include malignant brain tumors and bladder cancer with mutations in the fibroblast growth factor receptor 3 (FGFR3) gene. Last year, the drug received approval from the U.S. Food and Drug Administration (FDA) for a Phase 1 clinical trial plan (IND) and is being developed as a treatment for various solid tumors including bladder cancer, head-and-neck cancer, and glioblastoma.
The two companies did not disclose specific terms, total amounts, or advance payments concerning this contract. However, given that several companies have invested, the contract size is expected to be substantial. Samsung C&T, Samsung Biologics, and Samsung Bioepis jointly created the 'Samsung Life Science Fund,' which also invested in Aimmed Bio. American company Pfizer is also collaborating with Aimmed Bio on new drug development.
American Eli Lilly has signed technology transfer contracts for RNA therapeutics with two domestic bio corporations in the first half of this year. The company is generating significant revenue with its glucagon-like peptide-1 (GLP-1) obesity treatment drug 'Zepbound' (active ingredient tirzepatide).
OliX Pharmaceuticals transferred its RNA-based obesity and metabolic-associated fatty liver disease (MASH) drug candidate 'OLX702A' to Lilly in February. The total contract size is $630 million (900 billion won). On the 19th, Algenomics also transferred the RNA editing platform 'trans-splicing ribozyme' technology to Lilly for $1.35 billion (1.9 trillion won). The two companies agreed to jointly develop RNA editing therapeutics for hereditary hearing loss.
All domestic companies that Lilly has contracted with share the common characteristic of possessing RNA technology. This suggests that Lilly is expanding its new pipeline (group of drug candidates) by introducing domestic technology as a foundational gene therapy.
◇U.S. policy uncertainty creates opportunities for K-bio
The backdrop for the increased attention on domestic bio corporations from global big pharma is the uncertainty of U.S. pharmaceutical-related policies and the changing research and development (R&D) strategies of pharmaceutical companies.
The Trump administration’s tariff on imported pharmaceuticals, along with drug price reductions, is expected to reduce big pharma's revenue. Global pharmaceutical companies are likely to pivot towards introducing late-stage technologies with higher chances of success rather than costly and risky early-stage research.
This shift may present opportunities for Asian, particularly South Korean, bio corporations. It suggests that if technology capabilities are proven in clinical trials, it could become easier for South Korean bio companies to export their technologies.
In fact, among the technologies targeted by global pharmaceutical companies, 41% have entered the clinical trial stage, while preclinical assets account for 19%. Heo Hyemin, a researcher at Kiwoom Securities, noted, "This trend is expected to continue, and movements toward technology acquisition by big pharma will persist in the second half of the year."