Over the past two years, Eli Lilly and Company's Korea strategy—which helped seal more than 10 trillion won in technology exports, mergers and acquisitions (M&A), and equity investments with Korean corporations—has taken another step forward. Going beyond securing candidates, the company is bringing an open-innovation platform to Korea to directly nurture promising domestic biotechs, moving to invest in the biotech ecosystem.
At the center is "C-Lab Outside," which will open next year at the second Bio Campus in Songdo, Incheon, together with Samsung Biologics. Built as Samsung Biologics' open innovation center, the facility is the first case of transplanting the operating model of Lilly's startup incubation program, "Lilly Gateway Labs," into Korea. Outside the United States, it is the second base after China, and it is the first case of jointly operating a global big pharma open-innovation program with domestic corporations.
ChosunBiz visited Lilly Gateway Labs in Torrey Pines, San Diego, California, on the 25th local time. It was an opportunity to preview how Songdo C-Lab Outside, which will begin recruiting resident corporations in the fourth quarter of this year, will be run.
◇ Mentoring, AI, investment links… "No need to overlap with Lilly's research areas"
Gateway Labs in San Diego was not merely a place that rents out laboratories. Resident corporations receive support programs that include new drug development advising and links to investor networks, along with research facilities.
Verena Stocker, head of Europe for Lilly Gateway Labs, met on site, said, "The core of Gateway Labs is sharing Lilly's 150 years of discovery and development experience with early-stage biotechs."
Resident corporations can discuss research direction with Lilly researchers by disease area and receive advice on clinical development strategy. They can tap pitching coaching for fundraising and global investor networks, and also use Lilly's AI drug discovery platform. Some corporations have gone on to receive investment from Lilly Ventures, but whether to invest is separate from residency.
Stocker said, "We run programs tailored to each corporation's growth stage and connect the necessary experts."
There is no need for the research area to match Lilly's existing pipeline. Stocker said, "We are actively reviewing technologies in fields where Lilly has not yet entered."
◇ Gateway Labs that drew 4 trillion won in investment… will nurture 30 biotechs in Songdo
Launched in 2019, Gateway Labs currently operates in South San Francisco, Boston, San Diego, and Philadelphia in the United States, and in Beijing and Shanghai in China.
The San Diego site spans about 82,500 square feet (about 7,600㎡), with 18 modular research spaces, and can house up to 15 biotechs. Currently, 10 corporations are researching different therapeutic areas and modalities (treatment approaches). In the same building is Charles River, a global contract research organization (CRO), enabling linked use of research services such as animal studies.
According to Lilly, corporations that have gone through Gateway Labs have raised more than $3 billion (about 4 trillion won) in investment so far and have conducted more than 200 joint studies with Lilly researchers. More than 150 therapeutic candidates and platform development projects are underway. Based on this operating experience, Lilly plans to introduce the same model in Songdo.
Songdo C-Lab Outside will be built on five above-ground floors with a total floor area of 12,000㎡ at Samsung Biologics' second Bio Campus. Lilly, together with Samsung Biologics, plans to jointly select about 30 biotechs at Series B or earlier and nurture them for two years by default, up to four years.
Stocker said, "From selection to incubation, we will operate jointly with Samsung Biologics."
◇ "Focus on Korea's research competitiveness and early-stage bio ecosystem"
Stocker cited research competitiveness and the early-stage biotech ecosystem as reasons Lilly chose Korea for its new base outside the United States. Stocker said, "The level of scientific papers coming out of Korea is very high," adding, "Preclinical-stage biotechs are increasing rapidly, making it a good fit with Gateway Labs." Government policies to foster the bio industry were also mentioned as a key factor.
This view aligns with Lilly's moves to expand investment in Korea. This year, Lilly signed a memorandum of understanding (MOU) with the Ministry of Health and Welfare to invest $500 million over the next five years and acquired GC Biopharma's U.S. subsidiary Quratis for up to $1.5 billion. Earlier this month, the company in-licensed Hanmi Pharmaceutical's GLP-2 candidate "sonepeglutide." Last year, it in-licensed ABL Bio's blood-brain barrier (BBB) platform technology, and it has also worked with OliX Pharmaceuticals and Rznomics, widening its touchpoints with domestic bio corporations.
Lee Sang-myeong, executive director in charge of contract development (CDO) at Samsung Biologics, said, "C-Lab Outside will select resident corporations through joint evaluation based on Lilly's criteria, and we will also run the program together," adding, "Lilly personnel will also be stationed in Songdo to support resident corporations." Lee added, "Residency does not guarantee investment, but outstanding corporations may be linked to Lilly Ventures and Samsung's investment and support programs."