[Reporter's View] Fostering Korea’s Pharma-Bio industry

Korea lacks a mid-to-long-term strategy to foster the pharma bio industry

"Realistically speaking, it is not easy for the domestic pharmaceutical and bio industry to stand out in the global market.

 

It's time we set a specific and clear direction and strategy." An industry expert with over 20 years of experience in pharmaceuticals in the U.S.

 

who is currently serving as an advisor to government agencies in Korea responded so when asked about the status of Korea’s pharmaceutical and bio industry.

 

While a few domestic companies are making a mark in the global market, the expert explained that Korea still has a long way to go in the big picture.

 

The expert pointed to the difference in investments as a key example.

 

When considering the trillions of won invested in R&D by global pharmaceutical companies every year, a natural gap in capabilities has to exist.

 

Especially as R&D investments need to be made continuously rather than in the short term, the gap is bound to widen.

 

The pharma and biotech industry has also been calling for the pooling of capabilities and resources at the national level to foster the industry.

 

For example, the Korea Pharmaceutical and Bio-Pharma Manufacturers Association (KPBMA) submitted a statement to the 22nd National Assembly, calling for the government to fuifll its pledge made during general elections and increase R&D investment for new drug development.

 

The government is also making efforts to foster the industry, including the launch of the Biohealth Innovation Committee under the Prime Minister's Office.

 

However, much remains to be desired, as the K-Bio-Vaccine Fund is only half operational, and the Bio-Health Innovation Committee is operated under the Prime Minister’s Office instead of the President's Office.

 

The industry pointed out the lack of synergy between policies caused by the various ministries involved in the development as one of the issues, leading to the rise of budget allocation issues, lack of direction, and fragmented communication.

 

"The industry and policy direction needs to be aligned to support the expansion of Korea’s bio industry,” said Seung-kyou Lee, Vice President of the Korea Biotechnology Industry Organization, at Bioplus Interphex Korea 2024 in July.

 

The time has come for the domestic industry to draw a bigger picture than the fragmented strategies devised by each ministry in finance, regulation, and global policy.

 

The U.S.

 

presidential election and the implementation of the IRA are opportunities that the domestic industry should not miss.

 

Some advise against falling into the trap of thinking that the rise of a few companies is the rise of the entire domestic pharma and biotech industry.

 

They caution against the pitfalls of focusing on where Korea ranks in the global market.

 

In fact, when asked about the awareness of the Korean biotech industry, an overseas VC candidly replied, "Compared to China, Korea's is less known.” In order for the domestic pharmaceutical bio industry to become the next growth engine, the entire industry needs to step up, not just a few leading companies.

 

It is time to think about policies and strategies that can move the industry in that direction.