Korean pharmas unwavering in M&A and pipeline investment despite tightening

[Source: Yuhan Corporation]

South Korea’s pharmaceutical companies are keeping up with eager investments to enhance pipeline regardless of tighter liquidity market and global uncertainties.

According to industry sources on Thursday, Yuhan Corporation is expected to maintain its investment in healthcare ventures this year at the same level as last year’s 94 billion won ($65.5 million).

Yuhan is strengthening investment in pipelines related to cancer and brain disease medicines and RNA therapeutics, while expanding its scope to microbiome, probiotics, and animal medicines. Most recently, it became the largest shareholder of AtoGEN, which develops a microbiome-based treatment for muscle loss.

GC Holdings, the holding company of GC Pharma, also has not been rolling back venture investment next year. The company is focusing on digital healthcare and cell and gene therapy. This year, it invested in Emocog, which develops a digital treatment for mild cognitive impairment, Pumkin Company, a company that analyzes ancestry and defecation for companion animals, and Atommerce, which operates a psychological counseling platform.

Chong Kun Dang increased its investment budget to 8 billion won this year following 7 billion won venture investment deals last year. The company acquired a stake in Encell, a contract development startup, and made an additional investment in Biorchestra, which develops treatments for degenerative brain diseases this year.

Hanmi Pharmaceutical teamed up with KT in June to invest in Digital Pharm, a company specializing in digital treatment devices and treatments, declaring its entry into the digital treatment market.

Daewoong Pharmaceutical completed accelerator registration with the Ministry of SMEs and Startups in 2020 and has since continued startup investment projects. This year, Daewoong Pharmaceutical completed an investment in Seers Technology, a remote patient monitoring solution company, and Synergy A.I., an artificial intelligence-based organ diagnosis solution company.

According to FnGuide, Yuhan’s operating profit is expected to reach 57.6 billion this year, up by 18.5 percent from the previous year. The outlook for operating profit for other companies this year is also bright: GC Pharma (up by 46.4 percent), Daewoong Pharm (33.6 percent), Hanmi Pharm (20.3 percent), and Chong Kun Dang (7.1 percent).

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