Italy is widely known for its soft power through fashion, pasta, and pizza, but it is also a country with strong competitiveness in biotechnology. We will support the active collaboration between the pharmaceutical and bio industries of Korea and Italy.
Emilia Gatto, the Italian Ambassador to Korea, said this during a meeting at Haistreet Italy in Sinsa-dong, Gangnam-gu, Seoul, on the 23rd of last month. Bae Han-jun, CEO of the Korean branch of the Italian representative pharmaceutical company Menarini, also attended the meeting.
According to Ambassador Gatto, the export scale of the Italian pharmaceutical industry reaches 48 billion euros (approximately 76.84 trillion won) with around 700 pharmaceutical corporations, making it the second largest in Europe after Germany. She noted, "More than 10% of Italy's gross domestic product (GDP) comes from the biotechnology industry, which employs over 70,000 people," adding that the contract development and manufacturing organization (CDMO) sector accounts for 23% of total sales in Europe, boasting the largest proportion.
Ambassador Gatto pointed out that many traditional pharmaceutical companies like Menarini, which has a history of over 100 years, are a strength of the Italian pharmaceutical and bio industry. She stated, "Behind the competitiveness of the pharmaceutical industry lies a tradition of herbal treatment that dates back to the Middle Ages, technology accumulation centered on small and medium-sized enterprises, and a pragmatic approach based on clinical data."
Menarini, Italy's top pharmaceutical corporation, was founded in Florence in 1886 and currently operates in 140 countries. Last year's revenue was $4.98 billion (6.89 trillion won), making it the 36th largest pharmaceutical company in the world based on the last fiscal year. The total number of employees worldwide is about 18,000.
The two emphasized the need for expanded collaboration between the pharmaceutical and bio industries of both countries for the innovation and advancement in the field of medicine, which directly relates to patients' health and lives.
Ambassador Gatto stated, "In the field of aerospace engineering, comprehensive cooperation involving not only major corporations but also research institutes and small and medium-sized enterprises from both Korea and Italy is already active," adding, "I hope that a multi-layered collaboration strategy involving not only major pharmaceutical companies but also universities, research institutes, and venture companies will be expanded in the pharmaceutical industry."
Bae Han-jun, CEO of Menarini Korea, said, "If we consolidate the technological, clinical, and human resources of Korea and Italy, we can secure sufficient competitiveness in the global bio market," adding, "Connecting the research infrastructure and clinical experience of both countries can create even greater synergy."
The Italian government is also actively seeking ways to collaborate with Korea in the pharmaceutical and bio industries. The 1st Korea-Italy Business Forum to be held in Seoul in September is also expected to address pharmaceutical and bio cooperation as a key agenda.
Ambassador Gatto stated, "The Ministry of Foreign Affairs of Italy defines pharmaceutical and bio as a core industry under its 'Growth Diplomacy' strategy, supporting practical technological cooperation and expanding private investment with Korea," noting, "Since signing the Korea-Italy scientific and technological cooperation agreement, joint ventures between the two countries have increased, and collaborative research in various fields such as cancer, nervous system, and rare diseases is being conducted, which is encouraging."
Bae Han-jun, CEO of Menarini Korea, said that understanding the characteristics of the Italian corporate culture, which pursues long-term value rather than short-term results, can further enhance cooperation between the two countries. He remarked, "Menarini established its Korean branch in 2013 and has invested significantly in Korea, yet has never considered withdrawing from the market."
Menarini has expanded its business in Korea across all fields, including ethical pharmaceuticals (ETC), over-the-counter medicines (OTC), and medical devices. Main products in the prescription medicine category include hypertension treatments and pain relievers for cancer patients, while common medicines like the athlete's foot treatment 'Full Care' and scar treatment 'Dermatics' are also well-known.
Menarini Korea is collaborating with domestic pharmaceutical companies such as Ildong Pharmaceutical, Daewoong Pharmaceutical, Kwangdong Pharmaceutical, and Dongwha Pharm in product manufacturing and distribution. CEO Bae Han-jun stated, "Since my appointment in July last year, we have introduced an artificial intelligence (AI) system into our operations and are also preparing an e-commerce model optimized for the Korean market."