The Novartis Korea CEO, listed government support, growing per-capita consumption, and an aging population, as the key drivers of Korea’s bio-pharmaceutical industry, in a recent interview with the JoongAng Daily.
Korea is one of a few key emerging pharmaceutical markets in the world, according to Peter Jager, president of Novartis Korea.
In a recent interview, he welcomed the Korean government’s announcement in February that it would invest in and support the local drug industry by creating a fund worth 2 trillion won ($1.8 billion) and offering tax breaks to companies researching new drugs.
“It’s laudable that the Korean government has selected the bio-pharmaceutical industry as one of the next-generation growth engines, recognizing its value,” Jager said.
The Korean pharmaceutical market is estimated at approximately $10 billion, making it the 12th largest in the world. It’s expected to move up a few notches in the near future thanks to that support.
“The key drivers of growth are high per-capita consumption and an aging population among others,” Jager said.
And from a story in the Invest KOREA Journal, Jan-Feb, 2009 –
In October 2008 the Novartis Venture Fund (NVF) announced it will invest US$20 million in Korean bio-ventures over the next five years, between 2008 and 2012.
This marks the first time that the NVF has formed a country specific fund and is a decision based on the Korean market’s new drug development potential, the likely synergies to be generated in the life-science R&D field, the country’s strategic geopolitical location in Northeast Asia, and the superb expertise of its human resources.
The same month Neomics Inc., a local bioscience startup working in the field of oncology, was selected as the first recipient of investment by the Fund. Under the contract between the parties, Novartis Venture Fund will initially invest US$1 million in Neomics.
Another bio-venture company, PharmAbcine, specializing in therapeutic antibody treatments, was selected as a recipient for investment through the GATE Project.
An acronym for “Get Armed To Explore Global Markets” the GATE Project was officially launched last March as a combined initiative between Novartis, the Korea Health Industry Development Institute (KHIDI), Samsung Advanced Institute of Technology (SAIT), McKinsey & Co., and the Korea Trade-Investment Promotion Agency (KOTRA) to provide technology commercialization support to local bio venture start-ups, help them build global competitiveness, and so attract further overseas investment.
See previous post – Korea’s Promising Industries: Biotechnology for more information on investing in Korea’s biotech sector.
According to their website - Novartis Venture Fund holds more than USD 700 million under management and is adviced by stable investment teams based at affiliates in Basel Switzerland and Cambridge, MA USA.
In 2009 our portfolio increased by twelve new investments and now comprises over 60 companies, making the NVF one of the world’s largest corporate biotech venture funds. Including the commitment of other investors, about USD 2 bn is currently invested in total into NVF portfolio companies.
(Sources: JoongAng Daily, Invest KOREA Journal, company website)
