The K-bio industry is building anticipation for a rebound in the second half of the year, driven by significant technology exports, mergers and acquisitions (M&A), and clinical achievements. The recent surge in billion-dollar technology exports and active corporate mergers and investments is leading to a reevaluation of the industry's overall value.
According to industry sources, domestic pharmaceutical and biotech companies, including Hanmi Pharmaceutical, Aribio, Curacle, and Oscotec, have recently confirmed their global competitiveness by securing billion-dollar technology export deals. In total, there have been eight major global technology transfer agreements signed by domestic companies in the first half of the year, with a cumulative value of $8.51675 billion (approximately 13.7 trillion won), excluding one contract whose terms remain undisclosed. This figure surpasses the approximately $8 billion (around 12.27 trillion won) recorded in the first half of last year.
Specifically, on June 1, Hanmi Pharmaceutical signed a global technology transfer agreement with Eli Lilly for its candidate treatment for short bowel syndrome, 'Sonapeglutide' (HM15912, LAPS GLP-2 analog). The total contract value is $1.26 billion, with a non-refundable upfront payment of $75 million. Market analysts view this contract as significant, marking the first technology export to a major global pharmaceutical company since a deal with Merck (MSD) in 2020.
Last month, Aribio transferred the rights for its oral Alzheimer's treatment to China's Fusheng Pharmaceutical, securing a deal worth $4.7 billion, the largest in the first half of the year. The upfront payment alone is approximately $140 million, making it the biggest technology export deal in the domestic pharmaceutical and biotech sector this year.
Curacle has also signed a licensing agreement with U.S.-based Memento Medicine for the global exclusive rights to its dual antibody 'MT-103' for treating retinal diseases, with a total contract value of $1.07775 billion.
Oscotec entered into a technology transfer agreement with U.S. rare disease company Agios Pharmaceuticals for its autoimmune disease candidate, Sebidopelev. Oscotec will receive a non-refundable upfront payment of $25 million, with the total potential value reaching up to $665 million, including milestone payments through development, approval, and commercialization stages.
In terms of M&A achievements this year, Eli Lilly's acquisition of Curavo, a subsidiary of GC Green Cross, stands out. The deal, which includes upfront and milestone payments, totals $1.5 billion. Through this transaction, Eli Lilly has secured rights to Curavo's next-generation shingles vaccine candidate, 'Amezosbatin' (development name CRV-101).
Expectations for additional technology exports are also rising. D&D Pharmatech has confirmed improvements in liver fibrosis and resolution of metabolic dysfunction-associated steatotic liver disease (MASH) in its candidate treatment, Zobpegdutide (DD01), during Phase 2 clinical trials in the U.S. The MASH treatment market is experiencing a surge in global demand, making clinical success a critical indicator of K-bio's drug development capabilities. As competition intensifies, with major global pharmaceutical companies engaging in multi-trillion won M&A activities, D&D Pharmatech is also fostering optimism for technology transfers.
Industry insiders believe that if the government implements practical policies to lower research and development (R&D) support interest rates or alleviate research funding burdens, it could not only lead to a rebound in the second half of the year but also facilitate long-term industrial advancement.
However, some argue that government support should focus more on biotech firms rather than larger companies. Hwang Joo-ri, head of external cooperation at the Korea Bio Association, stated, "Companies that have established strong overseas investment networks are already forming a virtuous cycle and securing funding, but biotech firms are struggling with private funding and are essentially unable to sustain themselves. There is a need for policies that provide practical support to small and medium-sized biotech firms looking to expand internationally, in addition to incentives for larger companies."
* This article has been translated by AI.
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