In mid-January, President Yoon Suk-yeol went on a tour of the UAE and Switzerland, leading an economic mission. The business entourage, composed of major Korean companies, worked with President Yoon, meeting with the UAE government and business leaders.
Medytox succeeded in setting the stage for its advance to the Middle East market during the tour. At the Korea-UAE business forum, Medytox signed an MOU to build a plant for finished botulinum toxin products in the Dubai Science Park with state-run Tecom Group, the company said on Jan. 17.
However, there are voices of regret within the industry. Among 101 companies participating in the economic mission, Medytox was the only biopharmaceutical company larger than startups or ventures.
Korea International Trade Association, which selected the corporate participants in the mission, said later that it considered expected performance, such as business relevance, prospects, and the possibility of order receipts and contract signing in the selection, leaving even greater regrets among industry executives.
Korean biopharma companies are currently busy preparing for a global bridgehead to advance to overseas markets with homegrown new drugs. They must always pay attention to the Middle East market, too.
The companies had high expectations about opening the way for exporting homemade medical devices aside from conventional medicinal products, but the government failed to back them up.
Tensions are now hovering over the biopharma industry as the government raided some vaccine developers, including Covid-19 vaccines. Although the pandemic is shifting to an endemic stage, these companies must retain their experiences learned from developing new drugs. In reality, however, they are finding it necessary to rug all the traces of their efforts under the rug.
Of course, there were contrasting cases. For example, Lunit CEO Suh Kyung-seok, who took part in the World Economic Forum in Davos, Switzerland, demonstrated Korea’s high-level artificial intelligence industry and presented a blueprint for the future.
Through the event, Lunit showed bio and healthcare sector is Korea’s new growth engine. It also made the most of the opportunity to build investors’ trust, as shown by surging stock prices.
Due to the harsh business environment, including lingering inflation, the domestic biopharma industry faces a business winter. As a result, some attempted initial public offerings or capital increases but to little avail, experiencing difficulty securing operational funds and postponing major investment plans or research and development schedules.
To develop new medical products and devices amid strict regulations, businesses must invest a long period and massive capital. They have no choices but to endure long hardships. The government must help them with a message of sustainable promotion and support. Only then can homegrown blockbusters and vaccines come. This is the time for the government to lend force to discouraged biopharma companies.