Developing treatments for intractable diseases like Alzheimer’s disease is not easy. It requires various experimental equipment and specialized personnel, along with extensive research time. Startups may hesitate due to expense, even if they have the technology. The global pharmaceutical company Roche, based in Switzerland, has emerged as The Man from Nowhere, helping startups.
Qiusong Tang, head of the Roche Accelerator, noted in an interview on the 26th of last month at the Roche Korea branch in Seocho, Seoul, that “patients suffering from various diseases are eagerly awaiting the development of treatments” and added, “We are watering the seeds for startups developing treatments for intractable diseases to help them grow.”
Roche was established in Basel, Switzerland, in 1896. It has developed new drugs in fields such as neuroscience, oncology, immunology, and ophthalmology. Last year, it invested 19 trillion won, which is 22% of its revenue, in research and development (R&D). Roche supports the R&D of not only its own projects but also those of bio startups. This is a typical example of ‘open innovation,’ a trend in the pharmaceutical and bio industry that increases the potential for developing new drugs by incorporating external technologies and ideas.
Qiusong Tang earned a master’s and doctorate in neuroscience from University College London and Humboldt University in Berlin and joined the Roche Accelerator, an organization that supports startups. The Roche Accelerator supports around 20 bio startups, which are researching treatments for degenerative neurological diseases like Alzheimer’s and Parkinson’s or developing new drug delivery technologies like antibody-drug conjugates (ADCs).
Roche provides startups with a research facility in Shanghai, China, covering 5,000 square meters (about 1,500 pyeong). If they have the technology, they can jump into research immediately. Qiusong Tang stated, “If there are any concerns during research, they can share knowledge and skills from Roche’s scientists,” adding, “If bio corporations develop innovative treatments and commercialize them through clinical trials, they will be of great help to the patients.”
Of course, Roche can also secure new drug candidates or technologies. It is explained that depending on the research results of startups, Roche may invest in equity or enter into licensing agreements. Roche’s support for Chinese startups is likely due to the large size of China’s healthcare market and the increasing level of pharmaceutical and bio R&D, which suggests a greater potential for securing innovative new drug technologies that will resonate in the global market.
China is seeing increased interest in health due to an aging population and rising incomes. The Chinese government announced in its ‘Healthy China 2030’ plan that it aims to grow the healthcare industry from 8 trillion yuan (1,515 trillion won) in 2020 to 16 trillion yuan (3,030 trillion won) by 2030. While the Roche Accelerator primarily supports Chinese corporations, it sees the possibility of collaborating with corporations from other Asian countries in the future. Jeong Hoe-ryang, director of global business development at Roche, remarked, “Korea is geographically close to China, making it a favorable environment for joint research.”
Qiusong Tang highlighted artificial intelligence (AI) and platforms as biosciences that Roche is focusing on. He stated, “AI accelerates the speed of new drug development, and platforms assist in developing various substances efficiently.” AI can reduce the development time of new drugs and increase success rates by predicting side effects during the research process. Platforms refer to foundational technologies that can be applied repeatedly in the development of multiple new drugs across various aspects such as drug discovery, efficacy improvement, optimizing delivery pathways, and reducing toxicity.
AI is expected to play a significant role in the development of Alzheimer’s disease drugs. All currently developed Alzheimer’s treatments target amyloid beta proteins. Amyloid beta originally protects nerve cells, but when it escapes outside of brain cells and clumps together, it can destroy nerve cells. Jeong stated, “We can use AI to predict the side effects of Alzheimer’s disease drugs and reduce the likelihood of their occurrence,” and added, “We are reviewing collaboration with domestic corporations that possess such technology.”
As Roche actively engages in discovering overseas startups, it is coincidental that the major pharmaceutical markets are providing unprecedented support for new drug development. A representative example is the recent shift by various countries from a regulation-heavy policy to lowering the thresholds for new drug development.
The United States has reduced the new drug approval inspection period from about one year to 1-2 months. China has also shortened the review period for clinical trials of new drugs from 60 days to 30 days. Qiusong Tang advised, “The pharmaceutical and bio industry is changing rapidly,” emphasizing the need to expand collaborations with domestic and international corporations and to respond swiftly to the latest technological trends and regulatory changes.