This is referred to as technology commercialization, which is when government-funded research institutes create technologies or products using government research and development (R&D) budgets and turn them into services to sell in the market. South Korea's technology commercialization rate is among the lowest among OECD countries. ChosunBiz publishes a series called 'technology commercialization success white paper' to introduce successful technology transfers or startups to spread technology commercialization and to seek ways to improve the system.[Editor's note]
News from Italy on Oct. 16 of last year stirred the domestic bio industry. It was reported that 'CureVerse,' a startup of the Korea Institute of Science and Technology (KIST), signed a technology export contract worth $370 million (about 536 billion won) with the Italian pharmaceutical company Angelini Pharma. This is the largest amount among all historical technology exports of government-funded research institutes. Both the Minister of Science and ICT and the Chief Science and Technology Secretary of the Presidential Office worked hard to promote this.
The drug candidate for dementia developed by CureVerse, named 'CV-01,' captivated the Italian pharmaceutical company's attention. Until now, dementia treatments have focused on developing substances that prevent or eliminate the excessive accumulation of amyloid beta protein in the brain, which is considered a cause of dementia. However, this method has not yielded significant therapeutic effects.
The research team led by Director Park Gi-deok of the KIST Brain Science Institute has been working on developing next-generation dementia treatments since 2014, focusing not on the amyloid beta protein itself but on eliminating the inflammatory response, thus developing a new drug candidate. This drug is designed to be taken orally rather than injected, enabling periodic consumption at home with fewer side effects. CureVerse has been conducting Phase 1 clinical trials for 'CV-01' since September of last year.
CureVerse was established in October 2021 and is still a young company with just over 3 years since its inception. It has only 8 employees. However, it has raised a cumulative investment amount of 34 billion won and has achieved technology exports worth over 500 billion won in just three years, gaining recognition for its technological capabilities. What enabled CureVerse to establish itself so quickly in South Korea, which is known as a barren land for technology commercialization? On the 4th, at the KIST headquarters in Seongbuk-gu, Seoul, we met with Director Park Gi-deok and CEO Jo Sung-jin to hear their insights.
-I understand that Director Park and CEO Jo co-founded CureVerse. How did the collaboration come about?
Director Park Gi-deok (hereafter referred to as Park): "I have known CEO Jo Sung-jin since our first year at Yonsei University, where we spent time in the same laboratory. We also worked together as postdoctoral researchers at the Korea Research Institute of Bioscience and Biotechnology and have been consistently active in the same field. Both of us have worked on developing new drugs and have extensive experience in technology transfers at our respective research institutes. However, once the researchers experience a technology transfer, it often does not connect well to actual product development. The researcher who developed the substance cannot maintain control over it. This left us with a sense of regret, and ultimately, we decided to co-found the company."
CEO Jo Sung-jin (hereafter referred to as Jo): "I started thinking about establishing a new drug development company in late 2010. It has only been about 10 years. I never even considered starting a business before then."
-What triggered the two of you to align on starting a business?
Jo: "There was a program called BioStar that connects researchers from biotechnology companies with KIST researchers to support technology startups within KIST. Thanks to this program, I was able to challenge starting a business with Director Park."
Park: "The 'CV-01' technology that was recently exported and the 'CV-02' we are preparing are drugs developed to a certain extent through national projects. We transferred this technology to CureVerse, and development is ongoing through that company. Since the BioStar initiative requires collaboration between the research outcomes of KIST researchers and researchers from bio corporations, it naturally led to working with CEO Jo Sung-jin."
-The BioStar initiative has become a cornerstone of success.
Park: "The BioStar initiative is excellently crafted. It not only provides research funds but also involves patent experts and venture capital experts who assist with company management and address legal and institutional aspects regarding technology transfer. I hope there will be follow-up projects as well."
-Are there any regrets?
Park: "Since the BioStar initiative ended in June of last year, we can no longer receive various supports we had benefitted from through it. A significant loss is the space. Since there are many collaborative projects between KIST researchers and CureVerse researchers, it's disappointing that we can no longer use that space. Working together within KIST provided a considerable advantage, but that has now been lost."
Jo: "We have prepared a lab space of about 30 pyeong at the Seoul Biohub near KIST. Since we need to continue working with KIST, we are trying to be as close as possible. When working with government-funded research institutes, there are many regulations and restrictions. It would be great if these regulations and limitations could be eased a bit from the business perspective."
Park: "From a startup's perspective, it's difficult to have all the research equipment, facilities, and infrastructure. If KIST's Brain Science Institute could provide ongoing support for startup companies to utilize its infrastructure, it would be a great help. If you start a business in a government-funded research institute, you're allowed leave for up to 6 years, but afterward, you have to leave. Once you resign from the research institute, you can no longer access the research equipment or infrastructure. The same goes for research institute-founded corporate entities."
-What is the status of CureVerse's clinical trials?
Jo: "We are preparing the IND for 'CV-02' with the Food and Drug Administration (FDA) around March or April. 'CV-01' will complete its Phase 1 clinical trials this year, and we need to prepare to proceed smoothly into Phase 2. We are currently working on discovering the next candidate substance. We are meeting with Angelini Pharma every two weeks to prepare together. Angelini Pharma is gearing up to start Phase 2 clinical trials immediately, and we are supporting them with the necessary data and information."
-The government is preparing to improve the system to activate technology commercialization. Is there an issue that you feel strongly should be addressed?
Park: "After frequently engaging in technology startups at government-funded research institutes, there was an abrupt halt due to concerns about conflict of interest laws. As the conflict of interest prevention law was enacted in 2022, researchers can no longer hold equity in their startups. This removes the incentive for researchers to establish startups. To increase technology commercialization, this issue must be resolved. Many people gave up on startups because of this law at KIST."
Jo: "Director Park has talked a lot about the institutional aspects. I would like to offer one piece of advice to researchers preparing to start a business. It's essential for researchers to build trust with investors. While it's important to form a good team and work on strong projects, it's equally necessary to continuously communicate and build trust with investors."