Neurophet, an artificial intelligence (AI) corporations for diagnosing and treating brain diseases, said on the 14th it will establish a local subsidiary in Delaware. The new entity will be wholly funded by Neurophet, and the company plans to complete the incorporation process in October.
Founded in 2016, Neurophet is a company started at the Gwangju Institute of Science and Technology (GIST) by co-CEOs Bin Jun-gil and Kim Dong-hyun, and it listed on KOSDAQ in July, raising 28 billion won in public offering proceeds. Neurophet commercialized AI-based software that analyzes brain images to monitor the administration of Alzheimer's treatments and track changes in amyloid beta proteins, the cause of the disease.
Using the establishment of a U.S. subsidiary as a springboard, the company plans to move forward in earnest with its local launch. Neurophet co-CEO Bin Jun-gil said, "The United States is the world's largest medical market and one of the regions with the highest demand for AI-based brain disease diagnosis and treatment solutions," adding, "By establishing a U.S. subsidiary, we will strengthen a locally tailored strategy and provide more treatment opportunities to Alzheimer's patients globally."
More domestic pharmaceutical and bio corporations are setting up local subsidiaries in the United States. Korean corporations have been establishing U.S. subsidiaries one after another to launch their products in the world's largest healthcare market and accelerate marketing authorization through local research and development (R&D). As volatility in the trade and tariff environment has recently increased, there is also a growing need to build manufacturing, production, and distribution systems through local subsidiaries.
◇ Establishing U.S. subsidiaries to launch new drugs and digital therapeutics
Domestic pharmaceutical and bio corporations have set up local subsidiaries to expand U.S. sales. SK Biopharm also launched the new epilepsy drug "Xcopri (ingredient cenobamate)" in the United States in 2020 through its U.S. subsidiary. It also established the research-focused affiliate SK Life Science Labs and recruited local researchers in succession.
More recently, it established a joint venture, "Mentis Care," in the United States with Latin American pharmaceutical company Eurofarma. In June, SK Biopharm secured an 80% equity stake in Mentis Care by contributing its technology in kind. Through this, the company plans to pursue Digital Healthcare businesses, including an AI-based epilepsy management platform.
Regenerative medicine specialist PharmaResearch opened a local subsidiary in 2023 to target the U.S. market for Rejuran, a medical device for improving facial wrinkles. Director Jeong Yu-jin, daughter of PharmaResearch founder and Chair Jeong Sang-su, is leading the U.S. subsidiary. The PharmaResearch U.S. subsidiary first launched Rejuran cosmetics and set FDA approval for injectables as a mid- to long-term goal.
◇ Accelerating technology exports and new drug development through local subsidiaries
Given the characteristics of the pharmaceutical and bio industry, many companies are choosing to establish overseas subsidiaries as a strategy to improve technology export performance and R&D success rates. That is because it not only increases touchpoints with global corporations locally but also is important for clearing regulatory approval hurdles.
D&D Pharmatech, a developer of glucagon-like peptide (GLP)-1 obesity treatments, and ABL Bio, an antibody new drug development corporations, each have subsidiaries in the United States. The two companies recently drew market attention with clinical trial progress and technology export results.
In 2023–2024, D&D Pharmatech achieved technology export results by out-licensing oral obesity drug candidates MET-002o (DD02S) and MET-GGGo (DD03), and the subcutaneous obesity treatment DD15 to Metsera in the United States. Last year, DD01, under development as a treatment for metabolic dysfunction-associated steatohepatitis (MASH), was designated by the U.S. Food and Drug Administration (FDA) as a Fast Track (expedited review) drug, and in June this year, the company said it met the primary endpoint in a phase 2 clinical trial.
ABL Bio established a U.S. subsidiary in July 2022 and received approval that December for a phase 1 clinical trial plan in the United States. In June and October last year, it signed clinical trial collaboration agreements with U.S. pharmaceutical companies Bristol Myers Squibb (BMS) and Merck (MSD), respectively, to develop combination cancer therapies. The MD Anderson Cancer Center in the United States is conducting an investigator-initiated clinical trial on an anti-angiogenic anticancer candidate under development by ABL Bio.
The company said, "We established a wholly owned subsidiary in the United States to strengthen global competitiveness and expand business development opportunities for technology transfer," adding, "By assigning business development solely to the subsidiary, we are actively expanding business development opportunities with global pharmaceutical companies in the United States, Europe, and elsewhere."