Pharmaceutical Industry Revitalized by New Drug Clinical Trials... Led by Chong Kun Dang and Boryung

As COVID-19 subsides, clinical trials in the domestic pharmaceutical industry, which sharply declined two years ago, remained at a similar level last year. However, there are signs of a rebound mainly driven by new drug development clinical trials from large pharmaceutical companies such as Chong Kun Dang and Boryung.

According to the Ministry of Food and Drug Safety on the 2nd, a total of 1,018 domestic clinical trials were approved last year. The number of domestic clinical trials first exceeded 1,000 with 1,120 cases in 2020, when the pharmaceutical and bio industries attracted significant attention during the COVID-19 pandemic, then surged to 1,340 cases in 2021, but dropped to 1,011 cases in 2022 and remained at a similar level last year. This is interpreted as a result of decreased attention as COVID-19 transitioned to an endemic phase, and the global investment winter prompting multinational pharmaceutical companies to streamline their new drug candidate substances for survival.

Despite this situation, domestic pharmaceutical companies steadily conducted new drug development clinical trials last year.

Among domestic pharmaceutical companies, Chong Kun Dang and Boryung jointly ranked first by receiving approval for 24 clinical trials each last year. Chong Kun Dang has maintained the title of ‘the company with the most domestic clinical trial approvals’ for six consecutive years since 2018. Since establishing the Hyojong Research Institute in 2011, Chong Kun Dang has continuously invested in research and development (R&D). Research and development expenses, including clinical trial costs for new drug development, have steadily increased from 115.3 billion KRW in 2018 to 98.6 billion KRW in 2019, 146.7 billion KRW in 2020, 163.5 billion KRW in 2021, and 181.3 billion KRW in 2022. The proportion of R&D expenses relative to sales has consistently maintained a high level of around 12%.

Exterior view of Chong Kun Dang headquarters in Seodaemun-gu, Seoul [Photo by Chong Kun Dang]

Investment results are also emerging. In November last year, Chong Kun Dang licensed out ‘CKD-510,’ a drug under development for the rare diseases Charcot-Marie-Tooth disease and atrial fibrillation, to global big pharma Novartis in a deal worth up to $1.305 billion (approximately 1.7 trillion KRW), including a $100 million (approximately 130 billion KRW) upfront payment. Earlier last year, the company also achieved results with its own products by developing and launching the biosimilar for age-related macular degeneration, ‘Lucenbrys.’

Boryung has actively invested in R&D by recruiting Vice President Lim Jong-rae, who previously served as head of product development at Chong Kun Dang, as the head of R&D, and by expanding and relocating its central research institute. Boryung increased its R&D expenses to 46.3 billion KRW in 2022, showing an R&D-to-sales ratio in the 6% range.

Seoul Jongno-gu Boryung Headquarters Exterior
[Photo by Boryung]

Boryung’s R&D is focused on its flagship product, the hypertension treatment ‘Kanarb.’ All three phase 3 clinical trials approved last year were aimed at creating improved new drugs based on Kanarb combined with treatments for dyslipidemia or diabetes. This year, Boryung plans to accelerate pure in-house new drug development by applying for phase 2 trials of the anticancer drug ‘BR2002,’ which recently completed phase 1 trials.

Daewoong Pharmaceutical followed with 21 approved clinical trials, up by 2 from 19 the previous year. Daewoong Pharmaceutical is also emerging as a new R&D powerhouse, having recently received approval for the 34th domestic new drug ‘Pexuclu’ and the 36th ‘Enblo’ consecutively. The company is also focusing on follow-up drug development, starting clinical trials that combine the existing diabetes treatments ‘Metformin,’ LG Chem’s ‘Gemiglo,’ and Enblo.

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