Business soars for Korean pharma as U.S. cuts ties with Chinese partners

The United States' efforts to reduce reliance on Chinese biotechnologies are creating new opportunities for Korean biopharmaceutical companies, with Samsung Biologics and CHA Bio Group eyeing increased revenue.

Samsung Biologics CEO John Rim speaks during a press conference held on Wednesday in San Diego, where the annual BIO International Convention 2024 took place from Monday to Thursday. [SAMSUNG BIOLOGICS]

The United States' accelerating efforts to wean itself off Chinese biotechnologies are spelling new opportunities for Korean players.

In particular, a House bill called the Biosecure Act — which aims to bar government-funded medical providers from doing business with “foreign adversary biotech companies of concern” including China's WuXi AppTec — appears to be opening doors for domestic firms.

“The number of inquiries for orders doubled since the proposal of the Biosecure Act this year,” Samsung Biologics CEO John Rim said during a news conference Wednesday in San Diego, where the annual BIO International Convention (BIO USA) took place.

Though Samsung did not attribute that trend solely to U.S.-China conflict, tensions are certainly escalating; the bill is poised to advance to the House floor after receiving committee approval. If enacted, U.S. drugmakers would be mandated to cut ties with Chinese partners by 2032.

CHA Bio Group, a Korean biopharmaceutical company, is also eyeing new opportunities that the proposed legislation may open in the world’s largest biopharmaceutical market.

Paul Kim, CEO of CHA Bio Group's U.S. cell and gene therapy subsidiary, Matica Biotechnology, said he expects the company’s revenue to significantly increase due to the Biosecure bill during a news conference at BIO USA.

BIO USA 2024 ran from Monday to Thursday in San Diego, with more than 18,000 attendees. The event is one of the largest trade shows in the biotechnology and pharmaceutical industry.

Samsung Biologics took part in the annual convention for the 12th year in a row and set up an exhibition booth measuring 139 square meters (1,496 square feet) to showcase its contract development and manufacturing capabilities.

“We currently have 16 out of the top 20 pharmaceutical companies as our clients,” said Rim. “We are also receiving orders for the fifth plant, which is set to be completed next year, as well as for the antibody-drug conjugates (ADC).”

Samsung Biologics’ fourth plant, which has a production capacity of 240,000 liters [63,401 gallons], began full operation in June last year. With the addition of the upcoming fifth plant, the Incheon-based company will secure a total manufacturing capacity of 784,000 liters, which would currently be the world’s largest.

“We are increasing our work force and considering when to make investments for additional production facilities in line with the market demand,” said Rim.

The company would likely build such additional facilities in Korea, rather than the United States, according to the CEO.

A production facility dedicated to ADC drugs, a promising next-generation cancer treatment, will be complete by December as well.

“We are currently in discussion with several clients, including big pharma companies, regarding ADC production,” said Rim.

The Korean government also announced the launch of a new public-private alliance involving Korea, the United States, Japan, India and the European Union during the convention. Dubbed the Biopharmaceutical Alliance, it aims to enhance supply chain resiliency in the biopharmaceutical sector.

BY SHIN HA-NEE, KIM KYUNG-MI [shin.hanee@joongang.co.kr]