Global pharma expands K-bio collaborations…open innovation

Competition over early-stage candidates and platform technologies…diversifying collaboration strategies

Companies like Lilly, Bayer, and BMS expand beyond in-licensing to incubating

Collaboration between global pharmaceutical companies and Korean domestic biotech firms is expanding beyond technology in-licensing into a competition over open innovation strategies.

While the majority of past collaborations focused on in-licensing late-stage clinical assets, recent trends indicate diversification of collaboration types, including the acquisition of early-stage candidates and platform technologies, as well as the operation of startup incubation programs.

According to industry sources on the 3rd, Eli Lilly recently in-licensed 'sonefpeglutide', a novel drug candidate with a GLP-2 mechanism of action from Hanmi Pharmaceutical. Following cooperation agreements signed last year with OliX Pharmaceuticals, Rznomics, and ABL Bio, Lilly is expanding its collaborative scope with Korean biotech companies, including Hanmi Pharmaceutical this year.

Obesity to intestinal and metabolic diseases...Expanding portfolio

The recent agreement with Hanmi Pharmaceutical is seen as a signal that Lilly's existing metabolic disease strategy is expanding into broader therapeutic areas.

GLP-2 is a gut hormone involved in intestinal mucosal growth and the improvement of nutrient absorption functions. Unlike GLP-1, which focuses on blood glucose control and weight loss, GLP-2 induces intestinal epithelial cell growth, increases intestinal length, and improves nutrient and fluid absorption. Consequently, it is drawing attention as a therapeutic approach to reduce dependence on parenteral nutrition in patients with short bowel syndrome (SBS) who experience nutrient malabsorption following extensive bowel resection.

Notably, sonefpeglutide is being developed to extend half-life compared to existing treatments, thereby enhancing administration convenience. Currently in the global market, Takeda’s ‘Gattex (teduglutide)’ is used as a key GLP-2 therapy. However, concerns have been raised regarding its heavy dosing burden (once daily) and the need for improved long-term treatment sustainability. Analysis suggests that Lilly's acquisition of Hanmi’s candidate reflects an intent to dominate next-generation therapeutic options in the orphan gastrointestinal disease sector.

Lilly's in-licensing of novel drug candidates from Korean companies, including OliX Pharmaceuticals, Rznomics, ABL Bio, and Hanmi Pharmaceutical.

At the same time, this contract aligns with Lilly's broader strategy to expand its portfolio horizon across post-obesity metabolic disease indications. Recent global competition in metabolic diseases is expanding beyond simple glycemic control or weight reduction to encompass metabolic dysfunction-associated steatohepatitis (MASH), cardiovascular disease, chronic kidney disease (CKD), and inflammatory metabolic disorders.

Competitor Novo Nordisk is attempting to expand indications for 'semaglutide' beyond obesity management into MASH and cardiovascular disease prevention. Lilly is likewise broadening its therapeutic strategy across the metabolic spectrum, based on its obesity treatment, Mounjaro (tirzepatide). Lilly is evaluating the acquisition of a GLP-2-based asset to expand its portfolio into the intestinal and nutritional metabolism domain.

Analysts suggest that Lilly’s technology in-licensing in Korea includes securing an individual transaction, aligning with a strategy to reinforce its existing commercial portfolio and secure next-generation growth vectors.

Lilly has historically established an oncology portfolio centered on the breast cancer treatment 'Verzenio (abemaciclib)' and the gastric cancer treatment 'Cyramza (ramucirumab)'. In the immunology sector, it has expanded its commercial base with the psoriasis treatment 'Taltz (ixekizumab)' and the atopic dermatitis treatment 'Ebglyss (lebrikizumab)', and in the metabolic disease sector through diabetes treatments such as 'Jardiance (empagliflozin)' and 'Trulicity (dulaglutide)'.

Its previous collaborations are also linked to Lilly's business portfolio. Its partnership with ABL Bio is seen as strengthening oncological competitiveness through the acquisition of a next-generation antibody platform. At the same time, the agreement with OliX Pharmaceuticals aligns with its metabolic disease strategy, expanding into MASH and other indications. The Rznomics RNA editing platform is evaluated as an investment heavily geared toward securing next-generation therapeutic modalities over the long term.

From drug in-licensing to incubating...big pharma launches open innovation initiatives

Global pharmaceutical companies, including Lilly, are broadening their collaborations with domestic biotech firms beyond technology licensing to encompass incubation, early-stage R&D, and global commercialization support.

Open innovation programs currently operated by major multinational companies, including Lilly's 'Gateway Labs Korea'

Notably, alongside the recent acceleration of technology in-licensing from domestic biotechs, Lilly is supporting the local biotech ecosystem. In collaboration with Samsung Biologics, Lilly is pursuing the establishment of 'Gateway Labs Korea' in Songdo, Incheon.

Lilly ​Gateway Labs is a global incubator program that supports the research and development of startups and biotech companies. The Songdo facility is a collaborative model introduced by Lilly globally for the first time, tasked with helping domestic biotech firms access global R&D networks and commercialization capabilities.

The perception of South Korea as a strategic innovation hub is also spreading. This year, Bayer officially launched its domestic biotech startup collaboration program, 'Bayer Co.Lab Connect Seoul'. Serving as the Korean model of the life science incubator program that Bayer has operated in major global innovation hubs, it focuses on providing global expertise in regulatory strategy, commercialization, market access, and pricing, rather than focusing solely on financial funding.

BMS is also pursuing open innovation as its core growth strategy. To secure growth drivers following the impending patent expirations of flagship blockbusters like 'Opdivo (nivolumab)' and 'Eliquis (apixaban)', the company has pursued large-scale mergers and acquisitions (M&A) and external technology acquisitions over the past several years.

A prime example is its collaboration with Orum Therapeutics. In 2023, BMS signed a degradative antibody conjugate (DAC) technology agreement with Orum Therapeutics to secure a next-generation oncology platform. Concurrently, it is nurturing domestic startups through the 'Seoul-BMS Innovation Square Challenge'. Companies such as Frasier Therapeutics, Illimis Therapeutics, and Galux are receiving support for global networks and commercialization know-how through this program.

Novartis is expanding its open innovation collaboration with CHA Biotech in cell and gene therapy (CGT). At the same time, Amgen provides opportunities for domestic biotech startups to enter its facility and supports the operation of 'Bio Days' through its 'Golden Ticket' program.

MSD recently signed a MOU with the Korea Health Industry Development Institute (KHIDI) to strengthen cooperation within the domestic biotech ecosystem. At the same time, Roche has established a collaborative framework with KHIDI, Basel Area Business & Innovation, and the Korea Technology Finance Corporation (KOTEC) to support the global expansion of domestic biotech firms.

The global view of pharmaceutical companies on South Korea is shifting. While it previously served only as a sales market or a country for late-stage clinical trials, there is a growing consensus that it is a strategic innovation hub capable of early-stage R&D, platform collaborations, and startup incubation.

South Korea is the world's second-largest conductor of investigator-initiated trials after the United States, and is evaluated as a market that simultaneously possesses excellent clinical infrastructure, biomanufacturing competitiveness, and rapid adoption of innovation. In fact, BMS established a dedicated Asia-Pacific (APAC) organization this year, restructuring South Korea, Japan, and China as next-generation growth axes. Bayer also noted that its collaborative discussions in Korea have moved past deliberation into the execution phase.

Analysis suggests that expanding domestic collaborations by global Big Pharma is linked to a strategic shift regarding 'where to discover innovation and where to drive growth,' rather than simple technology in-licensing. This indicates that the Korean biotech ecosystem is beginning to play a more comprehensive role in the global value chain for novel drug development.