[Reporter's View] Korean R&BD system and strategies

What Korean R&BD system and commercialization strategies should be set for new drugs in Korea?

“It is not easy for a new drug to succeed just with good technology.

 

It is only a real success when the drug reaches the market.” This is what an executive of a global pharmaceutical trading company said to the reporter recently.

 

The tides are changing in the pharmaceutical and biopharmaceutical industry.

 

The focus is shifting from R&D (Research & Development) to R&BD (Research & Business Development).

 

In other words, business-related strategies such as technology transfer, joint development, and investment attraction have become as important as R&D.

 

The reality of the industrial ecosystem is behind this.

 

South Korea is still choosing a growth strategy centered on technology exports rather than innovative new drugs.

 

Although the number of pipelines is increasing, due to the nature of drug development that is accompanied by high cost and long-term battles, companies are focusing on technology transfer based on early-stage - such as Phase I and II - clinical results rather than the final approval, in order to achieve results.

 

In fact, it takes a long time for a single candidate substance to reach global clinical trials, approval, and market entry.

 

There is also a view that this is an unavoidable strategy in the domestic environment, where the pharmaceutical and bio-pharmaceutical ecosystem is relatively small, in terms of market size and investment conditions.

 

At the global level, there is a growing recognition that it is difficult to survive without commercialization in mind from the early stages of R&D.

 

R&BD, which adds business to R&D, has been spreading in line with this trend.

 

Although Business Development (BD) was an existing job category, there is an overall shift beyond a simple change in terminology, and the occupation now entails roles in setting research direction, investment structure, and organizational operation methods.

 

A typical example of such change is reflected in the recent activities of the Korea Drug Development Fund (KDDF).

 

The KDDF has recently put its R&BD strategy at the forefront when selecting support projects.

 

It comprehensively evaluates not only scientific feasibility but also the possibility of technology transfer, marketability, and global partnership plans.

 

Whereas in the past the focus was on “good research,” now the emphasis is on “technologies with commercial potential.” To this end, KDDF is currently preparing a multi-layered support system for strengthening R&BD, including consulting, collaboration programs with global pharmaceutical companies, and VC networking.

 

There are also cases where KDDF has arranged global partnering meetings for participating companies, which have led to positive trends in early-stage technology transfer.

 

They are sharing 'how to speak in business language, not technology'.

 

At the event, Yeong-Min Park, head of the KDDF, emphasized that “a sophisticated commercialization strategy is needed from the early stages for successful new drug development.” Ultimately, the key now lies in how to define the destination of research and development.

 

Paper?

 

Patent?

 

Clinical trial?

 

Now the destination is 'market'.

 

The industry believes that no matter how excellent the technology is, it is useless if it is not connected to the market.

 

Many pharmaceutical companies are reorganizing their structures by establishing new R&BD organizations or including BD personnel in their R&D departments.

 

New drug development is both a science and a business.

 

And it is the role of R&BD to create the intersection of the two.

 

The capabilities of business developers are becoming as important as those of researchers.

 

This is because, although there are many technologies, there are few success stories.

 

Now is the time to ask what value the technology has in the market rather than the R&D results.

 

Ultimately, the task of the pharmaceutical and biopharmaceutical industry is to nurture people who can bring the technology to the market.