Domestic pharmaceutical and biotech companies are rushing into the pet market one after another. They are creating pet-dedicated brands and expanding from supplements to drug development to secure new revenue sources.
Yuyu Pharma Inc. said on the 19th that it established a holding company in the United States, "Yuyu Venture," by investing $4.5 million (about 6.6 billion won). Yuyu Venture will oversee Yuyu Bio, which develops biopharmaceuticals for pets, and Mervyn's Petcare, which handles the supplement business.
Yuyu Bio is developing a protein therapeutic using recombinant gene technology. The company said it is focusing on developing a psoriasis treatment among chronic diseases in cats and is currently at the stage of deriving a clinical candidate. Mervyn's Petcare plans to launch cat dental health functional foods and stick-type supplements in the U.S. market in the first half of next year.
Daewoong Pharmaceutical, HK inno.N, and Prestige Biopharma are also accelerating the development of veterinary drugs. Daewoong Pharmaceutical developed "Envlo Pet," a pet version based on the human diabetes treatment "Envlo tablets," and applied for approval to the Animal and Plant Quarantine Agency on the 30th of last month. A company official said, "Managing diabetes in dogs is difficult without insulin administration, and depending on the dosage there is a risk of ketoacidosis or hypoglycemic shock, so safety is important."
Prestige Biopharma joined hands with Geovista, a company specializing in developing pet therapeutics, to conduct joint research on an atopic dermatitis treatment for dogs. The two companies plan to develop a canine IL-13–targeting antibody therapy candidate, "GV-V213."
HK inno.N is developing an atopic dermatitis treatment for both humans and pets. The new drug for pets received phase 3 clinical trial approval in May and will be developed as an oral medication. The human version is an ointment in phase 2 trials.
Pharmaceutical companies are also entering the supplement and quasi-drug market, which has lower entry barriers than pharmaceuticals and a larger market size. Dongkook Pharmaceutical, Cha Biotech Group, and Yuhan Corp. have released animal nutritional supplements, oral care products, and skin creams.
Yuhan Corp. in September introduced comprehensive supplements segmented by life stage and function for dogs through its pet brand "Willow Pet." Cha Biotech Group subsidiary Cha Bio F&C launched the pet supplement brand "PET7" this year. This month, it released a jerky-type supplement for dogs that uses a single hydrolyzed shrimp protein. Cha Bio F&C CEO Kim Seok-jin said, "We are developing nutrition solutions that cover the entire life cycle of pets in collaboration with experts such as the Seoul National University College of Veterinary Medicine Clinical Alumni Association."
The pharmaceutical and biotech industry sees the growing global pet market as a new revenue source. According to global market research firm Research Nester, the global veterinary drug market is expected to grow at an average annual rate of 5% from $23 billion (about 3.3 trillion won) in 2024 to exceed $76.6 billion (about 11.2 trillion won) in 2037.