The Ministry of Health and Welfare has officially selected Premier Partners as the managing operator for the K-Bio Vaccine Fund, which aims to drive growth in the pharmaceutical and biotechnology sectors. The new fund is expected to exceed its initial target, raising 2 trillion won (approximately $1.5 billion), accelerating the government's goal of establishing a 10 trillion won mega fund by 2027.
On June 24, the ministry announced that Premier Partners was chosen after a competitive selection process involving public offerings through Korea Venture Investment Corp., initial document and on-site reviews, and a second round of presentations. The K-Bio Vaccine Fund is a large-scale initiative designed to inject capital into domestic innovative companies, enabling the South Korean pharmaceutical and biotech industry to shift from a focus on generic drugs to the development of blockbuster new drugs and to build an innovation ecosystem. The fund aims to serve as a crucial catalyst in the lengthy and costly process of new drug development.
Originally set to raise 1 trillion won, Premier Partners has now set a goal of 2 trillion won, significantly increasing the fund's size. The government will contribute a total of 400 billion won, combining 200 billion won from the ministry's budget with 200 billion won from existing fund recoveries.
Of the raised funds, 60% will be invested in domestic companies across all sectors of biohealth, while 10% will focus on domestic firms with innovative technologies and manufacturing processes related to vaccines. The fund can begin immediate investments once it secures over 700 billion won, which is 70% of its target amount.
The K-Bio Vaccine Fund has already demonstrated significant impact in the market. Since its inception in 2023, the first six funds have raised a cumulative total of 5.796 trillion won, investing 2.463 trillion won in 52 companies across the pharmaceutical and medical device sectors. This has led to three companies with innovative technologies successfully going public, showcasing tangible scale-up achievements.
If the seventh fund successfully launches at the 2 trillion won scale, the total cumulative amount raised will reach 7.796 trillion won, expected to invigorate the entire venture ecosystem. The ministry plans to finalize the selection of the managing operator for a 1.5 trillion won clinical phase III specialized fund by July and aims to complete its establishment within the year.
Jeong Eun-young, Director of the Health Industry Policy Bureau at the Ministry of Health and Welfare, stated, "At a crucial time for the K-pharmaceutical and biotech industry to make a significant leap into the global market, a specialized operator has been selected. We expect that the establishment of this seventh fund will activate investments in biotech and small to medium-sized enterprises with innovative technologies, and we will push forward with the creation of the 10 trillion won mega fund without any setbacks."
On June 24, the ministry announced that Premier Partners was chosen after a competitive selection process involving public offerings through Korea Venture Investment Corp., initial document and on-site reviews, and a second round of presentations. The K-Bio Vaccine Fund is a large-scale initiative designed to inject capital into domestic innovative companies, enabling the South Korean pharmaceutical and biotech industry to shift from a focus on generic drugs to the development of blockbuster new drugs and to build an innovation ecosystem. The fund aims to serve as a crucial catalyst in the lengthy and costly process of new drug development.
Originally set to raise 1 trillion won, Premier Partners has now set a goal of 2 trillion won, significantly increasing the fund's size. The government will contribute a total of 400 billion won, combining 200 billion won from the ministry's budget with 200 billion won from existing fund recoveries.
Of the raised funds, 60% will be invested in domestic companies across all sectors of biohealth, while 10% will focus on domestic firms with innovative technologies and manufacturing processes related to vaccines. The fund can begin immediate investments once it secures over 700 billion won, which is 70% of its target amount.
The K-Bio Vaccine Fund has already demonstrated significant impact in the market. Since its inception in 2023, the first six funds have raised a cumulative total of 5.796 trillion won, investing 2.463 trillion won in 52 companies across the pharmaceutical and medical device sectors. This has led to three companies with innovative technologies successfully going public, showcasing tangible scale-up achievements.
If the seventh fund successfully launches at the 2 trillion won scale, the total cumulative amount raised will reach 7.796 trillion won, expected to invigorate the entire venture ecosystem. The ministry plans to finalize the selection of the managing operator for a 1.5 trillion won clinical phase III specialized fund by July and aims to complete its establishment within the year.
Jeong Eun-young, Director of the Health Industry Policy Bureau at the Ministry of Health and Welfare, stated, "At a crucial time for the K-pharmaceutical and biotech industry to make a significant leap into the global market, a specialized operator has been selected. We expect that the establishment of this seventh fund will activate investments in biotech and small to medium-sized enterprises with innovative technologies, and we will push forward with the creation of the 10 trillion won mega fund without any setbacks."
* This article has been translated by AI.
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