Global Pharmaceutical Companies Invested 715.3 Billion KRW in Domestic R&D Last Year, Up 20% from Previous Year

Korea Global Pharmaceutical Industry Association Announces Survey Results
Significant Increase in Early Clinical Trials

[Asia Economy Reporter Lee Gwan-joo] Global pharmaceutical companies operating in Korea invested more than 700 billion KRW in domestic clinical research and development (R&D) costs last year.

According to the "2022 Korea Research-based Pharmaceutical Industry Association (KRPIA) R&D Costs and Research Personnel Survey Report" released on the 7th by KRPIA, the R&D costs invested by global pharmaceutical companies in clinical trials last year amounted to 715.3 billion KRW. The total investment scale has increased by more than 20% annually over the past two years. The association interpreted this as "a result of Korea's global clinical trial capabilities being further recognized due to flexible crisis management and rapid response to changes in the clinical trial environment during the COVID-19 pandemic."

Last year, global pharmaceutical companies conducted a total of 1,590 domestic clinical studies, an increase of about 6.1% compared to the previous year. Among all clinical trials, oncology trials accounted for the highest proportion at 66.3%, while rare disease clinical research accounted for 9.7%. Additionally, a total of 14 clinical studies on COVID-19 therapeutics and vaccines were conducted.

Annual research and development (R&D) investment costs of global pharmaceutical companies operating in Korea. [Source=Korea Global Pharmaceutical Industry Association]

In particular, the growth rate of Phase 1 and 2 trials, which correspond to early-stage clinical trials, increased significantly compared to the growth rate of Phase 3 late-stage trials. This contributes to allowing domestic patients early access to new treatment options, including cutting-edge biopharmaceuticals, and indicates that opportunities for domestic researchers to participate from the early stages of new drug development are expanding. The total number of patients participating in Phase 1 to 3 clinical trials last year was 16,342, and the value of clinical trial drugs provided free of charge to domestic patients was estimated at 312.8 billion KRW.

The association emphasized, "Global pharmaceutical companies are expanding opportunities to provide new treatment options to domestic patients, ranging from severe and rare intractable diseases that are difficult to treat with existing drugs to new infectious diseases, through continuous expansion of R&D investment such as expanding domestic clinical trial infrastructure and training excellent personnel." However, it added, "Despite the increase in clinical trials for global new drugs in Korea, the domestic introduction rate of new drugs remains low. To improve domestic patients' access to cutting-edge new drugs, institutional and policy improvements are necessary in approval, reimbursement, and pricing decisions. This is also essential to maintain R&D investment in Korea from the global market."

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