Bioindustry in Korea
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Transcript of Bioindustry in Korea
25th
February 2009
Hong, Choong
Wan
Biotech and Nanotech Division
Ministry of Knowledge Economy
2
Contents
2. 2.
3. Korea3. Korea’’s s BioindustryBioindustry
–– OpportunitiesOpportunities
4. Vision and Policy Direction4. Vision and Policy Direction
1. Why 1. Why BioindustryBioindustry??
Bioindustry Overview and Policies
5. Policy Tasks5. Policy Tasks
3
Future Trends
New Technology Paradigm
1. Why Bioindustry?1. Why Bioindustry?
4
글로벌화글로벌화
Supports health and longevity by utilizing cutting-edge technologies.
Supports health and longevity by utilizing cutting-edge technologies.
Overcome environmental challenges by utilizing biomass, commercializing biotech, etc.
Overcome environmental challenges by utilizing biomass, commercializing biotech, etc.
Potential to Meet Potential to Meet Human NeedsHuman Needs
LowLow--Carbon, Carbon, Green GrowthGreen Growth
The bioindustry is a knowledge-based industry that creates value-
added and has great potential to meet the needs of a future society.
The bioindustry is a knowledge-based industry that creates value-
added and has great potential to meet the needs of a future society.
Future Trends
5
* Richard Oliver, author of The Coming Biotech Age, called biotechnology the Fourth Wave, the Third Wave being IT.
* Richard Oliver, author of The Coming Biotech Age, called biotechnology the Fourth Wave, the Third Wave being IT.
New Technology Paradigm
6
2. Bioindustry Overview and Policies2. Bioindustry Overview and Policies
Bioindustry Trends
Bioindustries in major countries
7
2004 2020
$540 billion(USD)
$1.3 trillionAnnual Average Growth
2006
$600 billion
Sustainable growth technologies (e.g. biorefining)
Significant GrowthSignificant GrowthSignificant Growth New Technologies via ConvergenceNew Technologies via ConvergenceNew Technologies via Convergence
High Risk, High Value-addedHigh Risk, High ValueHigh Risk, High Value--addedadded Low-Carbon, Green GrowthLowLow--Carbon, Green GrowthCarbon, Green Growth
0
New technologies
arising from the
convergence of
cutting-edge
technologies such
as IT, NT
Electronics
Machinery Chemicals
NTNT
ITIT
Bioindustry Trends
Development of new medicines
is a lengthy, costly process.
Annual value-added of one new medicine
= export of 3 million cars
8
By concentrating investment in biotechnology, countries are seeking solutions to concerns about energy, environment and aging populations.
By concentrating investment in biotechnology, countries are seeking solutions to concerns about energy, environment and aging populations.
Bioindustries in Major Economies
Policies established at the federal and state levels to foster the bioindustry on the basis of
world-leading technological competitiveness.
In 2005, the U.S. accounted for 75.7% of global imports, 78.3% of global R&D in the bioindustry.•
State governments continue to increase investment in biotechnology.
•
Federal government recently increased support for stem cell research and alleviated regulations.
Has established an EU-wide development strategy emphasizing simultaneous pursuit of
cooperation and competition.
Implementing the seventh Framework Program (2007 to 2013, 9.52 billion euros in investment)•
Focusing on bioenergy in a new strategy to reduce dependence on oil.
Has expedited collaboration among industry, academia and research centers through a biotech
commercialization strategy.•
Stressed the need to develop and commercialize new medicine in its New industry Creation Strategy (May
2004) and Science and Technology Basic Plan for Phase III (2006-2010).
•
Adopting a pragmatic approach to R&D, fostering translational research and clinical research alongside cutting-
edge research.
Government to foster nine core areas in an effort to become a biotech stronghold. •
Announced Biotechnology Development Master Plan in September 2005: Nine core areas have been identified
including agriculture, drugs, food and energy.
•
Plan to set up biotech clusters in Beijing, Tianjin, Changjiang Delta, Pearl River Delta, etc.
Measures TakenMeasures Taken
9
Status of Korea’s Bioindustry
Assessment of Issues
Opportunity: SWOT Analysis
3. Korea3. Korea’’s Bioindustry s Bioindustry
10
Production in 2008 was about $3.9 billion (Global market size : $124 billion)-
Annual growth rate from 2006 to 2008 stood around 19.7%
Government investment(‘08) was 920 billion won
-
8.5% of the total government R&D budget (10.8 trillion won)
cf.) US(22.5%), Japan(18%)
Businesses are small and the market has no leading companies or significant
investment.
Market SizeMarket SizeMarket Size
Investment and Industrial StructureInvestment and Industrial StructureInvestment and Industrial Structure
Korea’s level of technology is only about 60 to 70% of that seen in advanced
countries.
Nevertheless, the industry has made many achievements in a short
time and
shows great potential.
Technological CompetitivenessTechnological CompetitivenessTechnological Competitiveness
Status of Korea’s Bioindustry
Weak Global Network Weak Global Network Weak Global Network
Korean companies lack a strong global network
comparing with world’s global company.
- only 6 applications to the U.S. FDA for clinical trials of their products.
11
Total investment size of Korea government in
bioindustry is smaller than that of one representative
global company.
* R&D investment(‘08) : Korea government -
$900 million,
Pfizer -
$8000 million
Low InvestmentLow InvestmentLow Investment
Issues
12
Issues
Industrial ecosystem has not formed in place to facilitate
bioventure companies.
Despite the growth of the market, most growth was in food
biotechnology. -Production share (2006): food biotechnology 43%, biopharmaceuticals 39%,
biochemical technology 6%
Insufficient infrastructures to commercialize research results
through professional services such as CROs and CMOs.
Weak Industrial BasisWeak Industrial BasisWeak Industrial Basis
13
•
Advanced technology in the synthesis and
manufacture of biopharmaceuticals
•
Abundance of researchers with skills in
basic biotechnology
•
Over 20 years of experience in drug
development
•
Export of numerous technologies regarding
bio-candidate substances
•
Weak globalization of bioindustry
•
Lack of advanced infrastructure
•
Insufficient number of specialists
•
No joint research system in place
among academia, research and
industry
•
Potential to expand market in consideration of aging population and other factors
•
Increasing expiration of patents has opened up the biosimilar market
•
Well-established base for convergence with IT, chemical and other related industries
•
Potential to enter global market in collaboration with multinationals
•
Competition from China and India, which
have an edge in price competitiveness
•
Insufficient M&As and partnerships
among Korean companies
•
Dependency on overseas partners to
conduct clinical trials
•
Strong presence of multinationals in
Korean market
Opportunity: SWOT Analysis
14
5. Vision and Policy Direction5. Vision and Policy Direction
15
Vision and Strategy
To achieve bioeconomy society with healthy lifestyle7th leading country in bioengineering by 2015
Competitiveness in patented tech.
Nurture core researchers
Create industrialized market(production)
14th
in 2005 7th
10,000 researchers 17,000
3.9 billion won 60 billion won
2015201520082008
Goals
Strengthen regional and
global cooperation
Strengthen regional and
global cooperation
Red Bio White Bio
Global Bio
Promote
biochemical industry
Promote
biochemical industry
Pursue core R&D to produceworld-classproducts
Pursue core R&D to produceworld-classproducts
Establish infrastructure& nurture
human resources
Establish infrastructure& nurture
human resources
Revise regulations and lay a solid foundation for
business
Revise regulations and lay a solid foundation for
business
* Based on the 2nd
basic plan to promote bio-engineering
16
Pursuit of Essential R&D Projects
Development of Regional Bioindustry
Development of Biochemical Industry to Replace Petrochemical
Industry
Vitalization of Biotech Businesses
Development of Human Resources
6. Policy Tasks6. Policy Tasks
17
Strategic technology development (in 2008, 34.6 billion won),
Biostar project (in 2008, 12.8 billion won)
Facilitate development of core and source technologies and commercialization of technologies in pre-clinical and clinical stages
Facilitate development of core and source technologies Facilitate development of core and source technologies and commercialization of technologies in preand commercialization of technologies in pre--clinical and clinical stages clinical and clinical stages
Diagnosis :
Develop a small, affordable mass spectrometer and a system
to detect diseases at an early stage
Treatment : Develop embryonic and placental stem cell drugs and gene drugs
Materials : Develop body-friendly, next-generation implant technology
Pursue essential R&D projects to foster new growth engines in connection with MKE’s Technology Development Support Road Map
Pursue essential R&D projects to foster new growth engines Pursue essential R&D projects to foster new growth engines in connection with MKEin connection with MKE’’s Technology Development Support Road Map s Technology Development Support Road Map
Pursuit of Essential R&D projects
18
Foster specialized regional biotech centers
while promoting biopharmaceutical businesses in Chungcheong provinces. -
High-tech (Daejeon, Chuncheon), health supplement industry (Yeongdong, Naju), Korean medicine (Jecheon, Daegu)
Through 20 regional centers, provide necessary education to start up
businesses and create jobs.
Specialized Bioindustry ClusterSpecialized Bioindustry ClusterSpecialized Bioindustry Cluster
Enhance regional and global networks.
-
Through Korea Bio-Hub center
Enhanced Network Among Different ClustersEnhanced Network Among Different ClustersEnhanced Network Among Different ClustersRegional Bioindustry ClustersRegional Bioindustry Clusters
Development of Regional Bioindustry
19
R&D investment in biorefinery tech. (08-12, 12.5 billion won)
and bioplastics
& 2 additional projects will be supported in 2009.
Establish biorefinery pilot plants,
with joint efforts by industry, universities and research centers.-
Cooperation with local governments to utilize existing petrochemical complexes.
Development of Environmentally Friendly Products Utilizing Biomass and BiotechnologyDevelopment of Environmentally Friendly Products Utilizing BiomDevelopment of Environmentally Friendly Products Utilizing Biomass and Biotechnologyass and Biotechnology
Development of Biochemical Industry to Replace Petrochemical Industry
20
Offer support to promising biotech companies by utilizing the Biofund*
* To be established in 2009, 100 billon won
Support for InvestmentSupport for InvestmentSupport for Investment
Build Medical multi-complex
-
Global R&D hub in medical industry, support research for new medicine
-
Invest 5600 billion won by 2027
-
select 1~2 regions in 2009
Support for infrastructureSupport for infrastructureSupport for infrastructure
Support the commercialization and export of biotechnology
-
cGMP-based drug production facilities (Songdo Techno Park)
- a Medical Industry Overseas Marketing Support Center (KOTRA.)
- Exhibition & Confernece (Biokorea, Global Biotech Forum)
Support for ExportsSupport for ExportsSupport for Exports
Vitalization of Biotech Businesses
21
Nurture top researchers by opening specialized graduate schools * 2 schools, 800 million won in 2009
- Establish master’s and Ph.D. courses in collaboration with industries (medicine,
biotech), academia and research centers to converge IT, nanotech and biotech
ResearchersResearchersResearchers
Foster specialists in areas where demand is rising rapidly, such as
cGMP, quality management, biomaterial manufacturing, etc. * 1.48 billion won in 2009
SpecialistsSpecialistsSpecialists
Development of Human Resources
22