CEO of Japan's largest biotech cluster touts growing opportunities for Korean startups

“However, with the recent improvements in the relationship between Japan and Korea, a new route into the U.S. through the Asian market has emerged,” said Fujimoto.

Toshio Fujimoto, CEO of iPark Institute which runs Shonan Health Innovation Park, speaks during a press conference held on Wednesday on the sidelines of Bio Japan 2024 at Pacifico Yokohama Exhibition Hall in Yokohama. [JOINT PRESS CORPS]

YOKOHAMA, Japan — Japan’s efforts to grow its biotech venture ecosystem are creating greater opportunities for Korean startups amid a significant thawing of relations between the neighboring nations, according to the chief of Shonan Health Innovation (iPark), the country’s largest biotech industry cluster.

“Many startups in Korea used to begin domestically and then later expand into the United States,” noted Toshio Fujimoto, CEO of iPark Institute, during a press conference held on Wednesday in Yokohama on the sidelines of Bio Japan 2024.

“However, with the recent improvements in the relationship between Japan and Korea, a new route into the U.S. through the Asian market has emerged,” said Fujimoto.

iPark Institute runs Shonan iPark, Japan’s largest research facility in Kanagawa. The private-run cluster, measuring 300,000 square meters (square) in floor area, was established in 2018 when Takeda opened its then-in-house research center to outside companies. It currently houses 128 tenants, 40 percent of which are startups.

Shonan Health Innovation Park, Japan's largest biotech industry cluster, located in Fujisawa, Kanagawa [IPARK INSTITUTE]

Fujimoto, a former surgeon, has experience leading clinical trials in Japan, Germany and the United States. He has held the helm of the cluster since its launch six years ago.

Eight Korean startups joined iPark in September as part of a business agreement signed between the cluster and Korea’s Ministry of SME and Startups last year.

The companies primarily focus on cell therapies and regenerative medicine, areas considered Japan’s strong suits since Dr. Shinya Yamanaka was named the Nobel Prize in Physiology or Medicine winner in 2012.

“There are two main reasons for the Korean companies coming to Japan; the first is to establish connections with global pharmaceutical companies in the country, and the second is [Japan’s] cell therapy and regenerative medicine capabilities,” said Fujimoto.

iPark Institute CEO Toshio Fujimoto, right, poses for a photo during a business agreement signing ceremony with then Minister of SMEs and Startups Lee Young, center, on Nov. 19 in Seongdong District, eastern Seoul. [MINISTRY OF SMES AND STARTUPS]

Japan’s regulative system, which expedites the clinical trial process, offers greater opportunities for biotech companies to develop regenerative medicine than Korea, according to the CEO.

"Such companies [in cell therapy and regenerative medicine] aim to acquire approval in Japan first and then expand into the global market,” said Fujimoto.

With the bolstered partnership between the two countries, iPark plans to bring 20 startups from Korea and Japan to Boston in December, where the selected companies will meet with leading U.S. venture capital firms.

Fujimoto stressed that Korean startups, as well as other overseas companies, would see greater opportunities to enter the Japanese pharmaceutical market in the future. The government has been ramping up strategic investments in the sector since the Covid-19 pandemic boosted interest in drug development and healthcare worldwide.

One potential area where iPark is looking to expand its collaboration with Korea is antibody therapy, a specialty of Korean companies, especially Samsung Biologics.

“Korea historically has had strength in antibody therapy development,” said Fujimoto. “I wish we can put more focus on it, in order to further facilitate drug development in both Korea and Japan.”

Samsung Biologics recently gained membership in iPark, through which the biomanufacturing company plans to expand its network with other companies in Japan.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]