'K-Bio' Companies That Started as Campus Ventures and Built the BT Industry

Boom in Bio Venture Startups Driven by Early 2000s Government Support
University-Based Startups Enter KOSDAQ
Government Plans to Foster as National Core Industry

[Asia Economy Reporter Hyungsoo Park] As the government embarks on a phased return to daily life (With Corona), the bio and healthcare industries developing new drugs are gaining attention. With increased interest in health to prepare for the spread of COVID-19 infections, attention has grown not only on prevention and treatment but also on health functional foods and self-diagnostic kits. Domestic ivory towers are establishing themselves as a 'mecca' for nurturing bio venture companies.

In the early 2000s, the bio venture startup boom was led by university professors. In the bio industry, universities are among the sources of product innovation and technology development. Due to the nature of the bio industry, which requires a high understanding of the industry and insights into future markets, universities that secured research and development personnel and infrastructure in related fields led bio venture startups.

At that time, the government enacted a special law to foster ventures, and universities encouraged professors to start ventures. They spared no support, guaranteeing leave systems, allowing concurrent employment, and establishing on-campus incubation centers. Along with the venture boom, bio companies began entering the KOSDAQ market. In the late 2000s, technology holding companies acting as venture capitalists (VCs) were established to provide practical management support. After more than 20 years, the bio industry has grown into a BT industry comparable to IT.

Among the companies leading the domestic bio industry, many were born based on universities, such as Helixmith and Genexine. Helixmith, established in 1996 and listed on the KOSDAQ market in 2005, is known as Seoul National University's first on-campus venture that led bio startups. Helixmith announced the interim results of the Phase 3 clinical trial of the gene therapy drug 'Engensis' for diabetic foot ulcers (DFU) at an international conference held in San Francisco, USA. Genexine, founded by a professor from POSTECH, a science and technology specialized university, was established in 1999 and entered the KOSDAQ market in 2009, ten years later.

Universities are also contributing to fostering companies that lead innovative growth by establishing on-campus startup incubation centers. They prepare customized specialized programs according to company size and growth stage to enhance industrial competitiveness and create a virtuous cycle in the startup ecosystem.

Companies such as NewMed, a natural product research and development company launched from Kyung Hee University’s startup incubation center, and PanGen, a bio-pharmaceutical specialized company, are also on a growth trajectory.

PanGen, a biosimilar (bio-pharmaceutical generic) company founded in 1999 by Professor Yoon Jae-seung of Kyung Hee University’s Department of Genetic Engineering, was listed on the KOSDAQ market in 2016. It proved its technological capability by successfully developing a biosimilar of the anemia treatment drug 'Ifrex.' It is developing a biosimilar for hemophilia treatment. The anemia treatment drug Panfotin received product approval for its biosimilar in 2019 and has been sold since February last year.

NewMed was launched in 2003 as a venture company within Kyung Hee University’s startup incubation center, centered on the research team of Kyung Hee University’s College of Korean Medicine. Professor Kim Ho-cheol of Kyung Hee University’s College of Korean Medicine, Department of Herbal Medicine, who established NewMed to develop new drugs using traditional Korean medicinal herbs, has contributed to the scientification and globalization of Korean medicine by conducting joint research with clinical medicine and basic scientists from world-renowned universities such as Cornell Medical School, Johns Hopkins, and Beijing University of Chinese Medicine.

Based on its proprietary research and development platform called iMED, NewMed developed a complex (HT042) including functional ingredients such as Astragalus extract that can help children's height growth. Last year’s annual sales increased by 47% compared to two years ago. This year, it expects to maintain growth with sales increasing by more than 20% compared to the previous year.

NewMed received IND approval from the Ministry of Food and Drug Safety for the stroke treatment candidate substance (HT047) and completed Phase 2a clinical trials at eight university hospitals in Korea. It also received IND approval for the idiopathic short stature treatment candidate substance (HT073) for Phase 2b clinical trials. The company is focusing on systematic and scientific research and development to expand its scope from developing health functional food ingredients to new drug development.

This June, the government selected semiconductors, future cars, and bio sectors as the 'Big 3' national strategic industries. To foster these, it plans to enact the 'National Core Strategic Industry Special Act.' Budgets have also been allocated for projects such as expanding bio clinical infrastructure.

This content was produced with the assistance of AI translation services.