South Korean global licensing spikes n 2018

South Korean pharmaceutical companies entered into 11 out-licensing deals with overseas partners in 2018, according to the country’s Ministry of Health and Welfare.

According to data released by the ministry today, January 22, the licensing deals were worth 5.26 trillion won ($4.56 billion).

The deals were worth more than triple of those in 2017, when eight licensing deals were signed, totaling 1.4 trillion won ($1.28 billion).

One South Korean company, Yuhan, signed a contract worth 1.45 trillion won ($1.28 billion) to license out Lazertinib, a novel clinical-stage therapeutic candidate for the treatment of patients with non-small cell lung cancer.

The country’s health minister, Park Neung-hoo, congratulated 17 pharmaceutical and bio firms, as well as six research institutions which focus on new drug development, for their achievements.

In 2017, the South Korean government announced a five-year goal to become a pharma industry powerhouse. Since then, it has actively supported local pharmaceutical companies and the country’s biotechnology industry to reach this goal.

As part of an effort to strengthen the global competitiveness of its local drugmakers, the government has announced plans to expand tax benefits for phase III clinical studies conducted by local firms.

It will also help boost research and development and encourage companies to employ new technologies such as artificial intelligence.

Park celebrated the success of out-licensing deals in 2018 and said the government will continue to support pharmaceutical and biotechnology companies.

“The government will do its part to increase support for the industry to encourage investment in research and development that will lead to out-licensing contracts,” Park said.

Earlier this month, Yuhan entered into a licensing and collaboration agreement with US-based biopharmaceutical company Gilead Sciences.

Under the terms of the agreement, the two companies will co-develop novel therapeutic candidates for the treatment of patients with advanced fibrosis due to non-alcoholic steatohepatitis (NASH).

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