In the biotech industry, there is a saying about the so-called "LG brigade." That is because people from LG CHEM are stationed throughout the field. LG CHEM was once called a powerhouse in new drug development, and many talented people passed through there. The vice presidents of SK bioscience and Samsung Bioepis also came from LG CHEM. Talent who grew at LG CHEM are now leading businesses at other companies.
This talent pipeline from LG CHEM is seen as having helped broaden the base of Korea's biotech industry overall. The idea is that research and development experience and know-how accumulated at a single company spread across the industry and influenced ecosystem growth. On the other hand, some point to a structural limitation of talent outflow, in that LG CHEM failed to retain key personnel. Especially in fields where continuity matters, such as long-term new drug development, talent departures can lead to weaker competitiveness, prompting mixed assessments.
The history of LG CHEM's new drug development goes back decades. LG CHEM obtained a pharmaceutical manufacturing license in 1961 and established the LG Biotech Research Institute in the Daedeok Research Complex in South Chungcheong Province in 1979. It created a pharmaceuticals division in 1984, and in 1996, its hepatitis B vaccine, Euvax B, became the first in Korea to obtain prequalification (PQ) from the World Health Organization (WHO). This was essentially an item approval that allows participation in international organization procurement bids.
In 2002, LG CHEM spun off its pharmaceutical and biotech business into LG Life Sciences to focus on new drug development. The following year, in 2003, the antibiotic Factive became the first Korean new drug to win U.S. Food and Drug Administration (FDA) approval, and in 2012, it introduced Zemiglo, Korea's first novel diabetes treatment. However, in 2017, LG CHEM merged back with LG Life Sciences after 15 years. At the time, industry observers said LG Life Sciences needed funding to focus on new drug development, and a merger with cash-rich LG CHEM would enable more aggressive investment.
Those who shared the ups and downs at LG CHEM have left the company and are active across the industry. Vice President Cho Bong-jun, recently recruited as head of drug substance production at SK bioscience, worked about 20 years at LG CHEM. After earning a bachelor's in microbial engineering from Konkuk University and a master's in molecular microbiology from Sungkyunkwan University, Cho handled production of biologic drug substances at LG CHEM. Drug substance is the active ingredient in therapeutics. That makes production quality and safety critical. SK bioscience said it will "strengthen the safety of drug substance production for biologics, including vaccines."
Vice President Hong Sung-won of Samsung Bioepis also hails from LG CHEM. After earning a bachelor's and master's in pharmacy from Seoul National University and a Ph.D. in pharmacy from the University of North Carolina in the United States, Hong worked at the U.S. pharmaceutical company Regeneron before joining LG CHEM in 2019. Hong served as head of the new drug research center and head of the global innovation center at LG CHEM, then joined Samsung Bioepis in 2023. Hong also concurrently serves as CEO of EPIS NexLab and as an outside non-executive director at Samsung Bioepis Holdings.
Last month, Samsung Group officially launched Samsung Bioepis Holdings, which spun off from Samsung Biologics. Samsung Bioepis Holdings has Samsung Bioepis and EPIS NexLab as subsidiaries. Samsung Bioepis develops and commercializes biologics. EPIS NexLab is pushing development of bio-technology platforms such as in the amino acid conjugate (peptide) field. Former LG CHEM talent are now at Samsung, seeking new growth engines in biotech.
Chief Executive Kim Yong-ju of LigaChem Biosciences, acquired by Orion, is also from LG CHEM. Kim joined LG CHEM's Technology Research Institute in 1983. After serving as head of the Technology Research Institute at LG CHEM and head of the new drug research institute at LG Life Sciences' Technology Research Institute, Kim founded the company in 2006.
LigaChem Biosciences is a corporations that develops antibody-drug conjugates (ADC). ADC is a technology that attaches a drug to an antibody to deliver it precisely to cancer cells. It reduces side effects on normal cells and maximizes therapeutic effect, drawing attention as a core anticancer technology. LigaChem Biosciences has set a goal to secure 20 ADC new drug candidates by 2027.
In addition, Alteogen CEO Park Soon-jae also served as a managing director at LG Life Sciences. Founded in 2008, Alteogen has technology that converts anticancer drugs from intravenous injection to a subcutaneous injection formulation. Alteogen's technology has been applied to Keytruda, the anticancer drug from Merck. Subcutaneous injections are considered convenient because patients can administer them at home in 1 to 2 minutes. Alteogen is pushing for a transfer listing from KOSDAQ to KOSPI.
The biotech industry is a fierce battleground for talent. Securing talent is as important as retaining it. When personnel with biotech knowledge and experience leave, it can affect corporations' competitiveness. Talent who have left LG CHEM are networking with one another while producing results at different companies. That can be a frustrating point from LG CHEM's perspective. Even so, LG CHEM is also ramping up efforts to secure talent, including by recruiting Son Ji-woong, former vice president at Hanmi Pharmaceutical, as head of the life sciences business unit (president).
Meanwhile, in 2023 LG CHEM acquired the U.S. anticancer new drug corporations Aveo. Recently, it has been targeting the $10 trillion won U.S. renal cell carcinoma treatment market. It has introduced new drug substances from Aveo and is moving to develop new treatments for renal cell carcinoma. LG CHEM is also toying with ADC. A company official said, "ADC is a promising anticancer field, so we are in the early research stage to identify opportunities."
LG CHEM's cumulative sales for the third quarter this year are 34.735 trillion won. Of that, the life sciences segment accounts for about 3% of total sales. Even if the sales share is relatively small, LG CHEM, called an academy that produces biotech entrepreneurs, is drawing industry attention for its alumni.