South Korean traditional pharma eagerly embracing digital therapeutics

Kim Si-gyun and Susan Lee 2022. 7. 6. 13:45
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South Korean traditional pharmaceutical companies are eagerly exploring the digital therapeutics (DTx) market through partnerships with IT companies.

In June, Hanmi Pharmaceutical and KT Corp. teamed up to jointly invest in Digital Pharm, a subsidiary of Catholic University of Korea Technology Holdings specializing in digital treatment devices and electronic drugs. The three companies will work towards commercializing electronic drugs for ADHD and DTx for alcohol and nicotine addiction.

Electronic drugs treat illnesses by using external physical stimuli such as current and electric fields to deliver signals to nerves, tissues, and organs. There are no chemical side effects and these drugs can be applied directly to specific sites.

Handok signed an equity investment worth 3 billion won ($2.29 million) with digital therapy startup Welt in March last year to jointly develop electronic drugs for alcohol addiction and insomnia.

Traditional pharmaceutical companies Dong-a Socio Group and Yuhan have also officially declared that it will go digital. Dong-a Socio Group invested in AI healthcare company Medical IP and digital healthcare company Mezoo last year while Yuhan became the second-largest shareholder of AI ECG device company Huinno in 2020.

Whan In Pharm and Samil Pharmaceutical each invested in domestic electronic drug companies YBrain and Nu Eyne.

SK biopharm, along with SK, invested in a Series D funding round in U.S. bioelectric medicine company Cala Health in May.

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