Over the past two years, Eli Lilly and Company's Korea strategy—which has sealed more than 10 trillion won in technology out-licensing, mergers and acquisitions (M&A), and equity investments with Korean corporations—has taken another step forward. Going beyond securing candidates, the company is bringing to Korea an open-innovation platform that directly nurtures promising domestic biotechs, moving to invest in the bio 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, this facility is the first case of transplanting the operating model of Lilly's startup support program "Lilly Gateway Labs" into Korea. Outside the United States, it is the third hub after China and Germany, and the first case of a global big pharma's open-innovation program being co-operated with domestic corporations.
ChosunBiz visited Lilly Gateway Labs in Torrey Pines, San Diego, California, on the 25th local time. It was a site visit offering an early look at how the Songdo C-Lab Outside—set to begin recruiting tenant corporations in the fourth quarter this year—will operate.
◇ Mentoring, AI, investment links… "No need to overlap with Lilly's research areas"
Gateway Labs in San Diego was not just a place that rents out labs. Tenant corporations are offered a support program that includes research facilities along with new drug development advice and links to investor networks.
Verena Stoecker, Lilly Gateway Labs' head for Europe, met on-site, said, "The core of Gateway Labs is sharing Lilly's 150 years of discovery and development experience with early-stage biotechs."
Tenant corporations can discuss research direction with Lilly researchers by disease area and get advice on clinical development strategies. They can use pitching coaching for fundraising and global investor networks, and they can also access Lilly's AI drug discovery platform. Some corporations have gone on to receive investment from Lilly Ventures, but whether to invest is separate from tenancy.
Stoecker said, "We run the program to match each corporation's growth stage and connect the necessary experts."
Research areas do not need to match Lilly's existing pipeline. Stoecker said, "We are actively reviewing technologies in areas where Lilly has not yet entered."
◇ Gateway Labs drew 4 trillion won in investment… Will nurture 30 biotechs in Songdo
Launched in 2019, Gateway Labs now operates in South San Francisco, Boston, San Diego, and Philadelphia in the United States, and in Beijing and Shanghai in China. Following Munich in Germany, a new hub will be established in Songdo, Korea.
The San Diego hub spans about 82,500 square feet (about 7,600㎡), with 18 modular research spaces, and can host up to 15 biotechs. Ten corporations currently study different therapeutic areas and modalities (treatment approaches). In the same building, global contract research organization (CRO) Charles River also has a site, 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) to date and 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 the second bio campus of Samsung Biologics as a five-story, 12,000㎡ facility. Lilly plans to jointly select about 30 biotechs at Series B or earlier with Samsung Biologics and nurture them for two years by default, up to four years.
Stoecker said, "From selecting corporations to nurturing them, we will co-operate with Samsung Biologics."
◇ "Korea's research competitiveness and early-stage bio ecosystem stand out"
Stoecker cited research competitiveness and the early-stage biotech ecosystem as reasons Lilly chose Korea as its new hub outside the United States. "The quality of scientific papers coming out of Korea is very high," Stoecker said. "The number of preclinical-stage biotechs is growing rapidly, making it a good fit for Gateway Labs." Government policies to foster the bio industry were also mentioned as key factors.
This assessment aligns with Lilly's broader expansion of 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 agreed to acquire GC Biopharma's U.S. subsidiary QurAlis for up to $1.5 billion. In early this month, it in-licensed Hanmi Pharmaceutical's GLP-2 candidate "Sonepegultide." Last year, it in-licensed ABL Bio's blood-brain barrier (BBB) platform technology, and it has also collaborated with OliX Pharmaceuticals and Rznomics, widening 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 tenant corporations through joint evaluation under Lilly's criteria, and we will operate the program together," adding, "Lilly personnel will also be stationed in Songdo to support tenant corporations." Lee added, "Tenancy does not guarantee investment, but outstanding corporations may be linked to investment and support programs from Lilly Ventures and Samsung."