Technology exports by domestic pharmaceutical and biotech corporations have surpassed 21 trillion won so far this year. Following last year, another all-time high is expected this year. Platforms that change drug formulations and delivery routes, as well as obesity and dementia drug candidates, are driving technology exports.
On the 4th, according to the Korea Pharmaceutical and Bio-Pharma Manufacturers Association (KPBMA), domestic pharmaceutical and biotech corporations have concluded 13 technology export deals from January to the present. Of these, 11 with disclosed sizes totaled 21.3525 trillion won. That is more than last year's record performance (about 20 trillion won). The industry expects technology transfer to continue in the remaining second half.
◇ Alteogen, Hanmi Pharmaceutical, Aribario log trillion-won technology exports
KOSDAQ bellwether Alteogen(196170) on the 2nd signed a technology export deal worth up to 4.4165 trillion won with Switzerland's Novartis. Alteogen has technology (ALT-B4) that converts intravenous injections to subcutaneous injection formulations. Subcutaneous injections are convenient because patients can administer drugs at home without going to the hospital. Novartis has the right to use this technology.
Including this, Alteogen has completed four technology exports this year. In January, it signed a deal worth up to 420 billion won with Tesaro Inc., a subsidiary of GSK plc, and in March, a 867.6 billion won technology transfer with Biogen. Last month, it executed a 521.9 billion won technology transfer. The counterparty was not disclosed.
Hanmi Pharmaceutical(128940) also achieved two technology exports this year. Last month, it transferred an obesity drug candidate that preserves muscle (HM17321) to Genentech, a Roche subsidiary, for up to 3.1892 trillion won. It is in phase 1, with 262.9 billion won as the upfront payment. Hanmi Pharmaceutical in May exported a gastrointestinal disease treatment candidate (sonepegide) to U.S. Eli Lilly and Company for up to 1.8973 trillion won. It is in phase 2, and Eli Lilly and Company will proceed with additional trials and commercialization.
아리바리오 in May exported an Alzheimer's treatment candidate (AR1001) to China's Fuson Pharma for up to 7 trillion won. It is the largest single contract. Curacle(365270) and Maptis co-developed a retinal disease treatment candidate (MT-103) and exported it to U.S. Memento for 1.5636 trillion won. In addition, Oscotec(039200) transferred an autoimmune disease treatment candidate (seviodoflenib) to U.S. Agios, and Neoimmunetech(950220) transferred an immuno-oncology candidate (NT-I7) to U.S. Tolerance Bio. SK Plasma also exported technology to produce essential plasma-derived medicines to Turkish corporations Protürk.
◇ Foreign drugmakers eye K-bio amid the patent cliff
Domestic pharmaceutical and biotech corporations sign contracts by exporting new drug candidates or technologies to foreign drugmakers. They receive upfront payments, milestones (license fees) by development stage, and a portion of product sales revenue (royalties). However, signing a contract does not mean the entire amount is received. The figure includes potential value that can be obtained only if approvals and commercialization succeed.
Analysts say the external environment has also helped K-bio deliver results through technology exports. Major drugs at foreign pharmaceutical companies will soon face a patent cliff. In this situation, they are looking outside for new drug candidates and paying attention to domestic corporations. A Korea Pharmaceutical and Bio-Pharma Manufacturers Association (KPBMA) official said, "As domestic corporations invest in research and development (R&D) and strengthen competitiveness, demand from foreign drugmakers to introduce technology is increasing."
Some note it is regrettable that, despite discovering strong new drug candidates, they often do not carry development through to the end. Because substances are handed over to foreign drugmakers in the middle stages, even if they can receive upfront payments and milestones, the final gains go to the foreign companies. Some argue that domestic corporations need to strengthen the capability to independently develop blockbuster medicines.