Pharmaceutical and biotech companies in South Korea are intensifying their efforts to diversify business operations. (Image courtesy of Incheon Free Economic Zone Authority)
SEOUL, March 20 (Korea Bizwire) – Pharmaceutical and biotech companies in South Korea are intensifying their efforts to diversify business operations, seeking to improve profitability and strengthen competitiveness by securing future growth engines.
According to industry sources, ENCell, a company specializing in new drug development, plans to add artificial intelligence software development and services to its business objectives through an amendment to its articles of incorporation at this month’s shareholders’ meeting.
With this addition, ENCell aims to boost efficiency in contract development and manufacturing (CDMO) and therapeutic development processes. The company plans to implement AI-based biodata analysis solutions to improve the manufacturing process of cell and gene therapies (CGT). ENCell also stated it will expand its corporate brand by launching new businesses in cosmetics and health supplements.
Aptamer Sciences, a biotech venture, plans to add eight items to its business objectives, including “technology transfer business,” “pharmaceutical non-clinical and clinical trial analysis services,” and “health functional foods and cosmetics wholesale, retail, and import/export business.”
Aptamer Sciences, which was listed through a special technology exception in 2020, will be subject to delisting criteria based on sales performance starting this year. Industry observers believe the company is pursuing business diversification to drive sales growth, as it faces potential delisting if it fails to exceed 3 billion won in sales this year.
ISU Abxis, a company developing cancer and intractable disease treatments, is adding “real estate purchase, lease, and development business” and “domestic and international investment business” to its business objectives.
Some companies are exploring diversification through entry into the pet pharmaceutical market. Yuyu Pharma is submitting amendments to its articles of incorporation at this month’s shareholders’ meeting to add manufacturing and sales of veterinary medicines to its business objectives. If approved, the company plans to establish a new department focused on animal pharmaceuticals.
Ahn-Gook Pharmaceutical is also adding feed manufacturing, import, and sales to its business objectives, apparently seeking to diversify through pet food manufacturing and sales.
Industry experts predict that pharmaceutical and biotech companies will move beyond their traditional focus on prescription drugs to venture into various business areas.
Boryung represents a prime example of this trend. The company has identified space as a future growth area and is expanding its business through continued investment in Axiom Space, a U.S. company that is building a commercial space station.
Boryung believes that as humans venture further into space, demand for related pharmaceuticals and “space healthcare” will increase. Kim Jung Gyun, CEO of Boryung, emphasized the necessity of space healthcare businesses last month, stating, “As more people go to space, they will face the same human body issues experienced during the Age of Exploration when people traveled by ship.”
M. H. Lee (mhlee@koreabizwire.com)
