Polaris AI Pharma Partners with Maseong LS for Domestic API Self-Sufficiency... "Overcoming Drug Price Reduction Challenges"

Photo of the Memorandum of Understanding signing ceremony. From the left, Wonkyung Cho, CEO of Polaris AI Pharma, and Sujin Kim, CEO of Maseong LS. Provided by Polaris AI Pharma

Polaris AI Pharma, a leading Korean manufacturer specializing in active pharmaceutical ingredients (APIs), is partnering with Maseong LS, a company specializing in pharmaceutical wholesale and distribution, to promote self-sufficiency in national essential medicines and secure cost competitiveness.

On March 5, Polaris AI Pharma announced that it had signed a memorandum of understanding (MOU) with Maseong LS for “cooperation on the localization and commercialization of domestic pharmaceutical ingredients.”

This agreement was prompted by the current policy trend in the pharmaceutical industry, which is heavily focused on drug price reductions. In this context, the management of finished drug costs and the establishment of stable supply chains have emerged as key survival strategies for companies.

Starting with this agreement, both companies aim to establish a successful business model that actively responds to changing pharmaceutical industry policies and to contribute to enhancing the self-sufficiency of raw materials in Korea’s pharmaceutical sector.

The companies plan to build an integrated value chain for domestic APIs, spanning development, distribution, and commercialization. The focus will be on national essential medicines, central nervous system (CNS) drugs—which have seen a recent surge in demand—and improved new drugs.

Especially as the government is implementing policies to encourage the use of domestic raw materials for essential medicines and increase the self-sufficiency rate from a public health security perspective, the companies’ proactive partnership model is expected to become a powerful tool for securing structural competitiveness in the pharmaceutical market going forward.

Polaris AI Pharma possesses specialized capabilities in the localization of advanced APIs, built on years of accumulated expertise in synthesis and process development. The company has established a raw material supply system that allows it to grow alongside finished drug manufacturers even amid drug price reduction policies, by maximizing cost competitiveness through process optimization.

Maseong LS is a wholesale specialist with a solid supply chain and extensive network in the domestic pharmaceutical distribution market, backed by many years of experience. As the company is quick to identify market demand changes and on-the-ground needs, it is expected to play a pivotal role in the swift market entry and expanded distribution of pharmaceutical products based on domestic ingredients.

Through this MOU, the two companies will actively pursue five key tasks: (1) joint planning of cost-competitive APIs in response to drug price reduction policies; (2) establishing a raw material supply system for national essential medicines and items with unstable supply; (3) collaboration on the development of APIs for CNS drugs and improved new drugs; (4) introducing customized supply models reflecting the needs of finished drug manufacturers; and (5) jointly participating in government policy response and support initiatives.

Wonkyung Cho, CEO of Polaris AI Pharma, emphasized, “The current drug price reduction policy is a signal of structural changes that require a fundamental transformation not only for finished drug manufacturers but for the API industry as a whole. The core of this partnership is to achieve both price competitiveness and supply stability through the development of domestic ingredients based on our unrivaled technological capabilities.”

Sujin Kim, CEO of Maseong LS, stated, “The pressure of drug price reductions felt in the pharmaceutical distribution field is extremely strong, and ultimately, securing stable domestic ingredients determines the true competitiveness of products. Through this partnership, we will actively seek new sales channels so that these ingredient-based medicines planned through our collaboration can become clear alternatives in the market.”

Meanwhile, Polaris AI Pharma is steadily operating its generic-based API and CDMO businesses, and since joining the Polaris Group, the company has been working to expand into AI-based pharmaceutical R&D (research and development) data business in collaboration with Polaris Office, focusing on software-driven solutions.

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