Industry groups bicker over use of ‘bio-’ in titles

Interests in bio industry here are hotter now than ever before. Not just the pharmaceutical industry but the government’s policies have tended to focus on the bio sector. In selecting the 11 new industries for tax credits recently, policymakers included “bio-health” except for synthetic drugs.

The recent controversy over changing the name of Korea Pharmaceutical Manufacturers Association (KPMA) reflected such high interests in the word “bio.”

KPMA, an organization representing 198 domestic pharmaceutical companies, changed its name to Korea Pharmaceutical and Bio-Pharma Manufacturers Association (KPBMA) on March 15.

The existing bio industry-related organizations, thinking the drugmakers’ group is attempting to expand its business domain to the bio sector, immediately criticized it for “violating business morality.”

Already, two associations represent bio companies in the nation -- Korea Biotechnology Industry Organization (KoreaBio) and Korea Biomedicine Industry Association (KoBIA). KoreaBio, founded in 1982, is the largest such organization with 230 companies as its members while KoBIA, established in 2011, is helping its 103 member firms commercialize biomedical products.

“It is anachronistic to try to occupy a particular industrial field through a name change,” said Seo Jeong-sun, the head of KoreaBio not trying to hide his discomfort. “This is time for the two organizations to propose a mutually complementary cooperative model through differentiating their functions.”

A bio industry executive also backed him up. “Pharmaceutical companies and bio companies have their roles to play. KPBMA focuses on drug makers while KoBIA comprises bio ventures, too. If the two institutions cooperate with each other, they can generate synergy effect,” he said.

KPBMA, apparently conscious of the criticism, said it would make an effort to produce synergy based on cooperation with the bio businesses.

“The bio industry is talking about similar names, but I don’t think names indicate business territories. Rather, we can pursue open innovation with other associations. We will make a strategic partnership to match drugmakers with startups or ventures for that purpose,” said Won Hee-mok, president of KPBMA. “We expect synergy effect with the KoreaBio and KoBIA in this regard.”

He went on to say, “You can’t limit bio business to a given area. As any particular industry cannot monopolize IT, bio-industry covers various fields, including medical supplies, healthcare, and agricultural products. The pharmaceutical industry also can’t help but branch out into the bio field. We will encourage pharmaceutical companies to make a strategic partnership with and increase investment in the bio-industry.”

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