"After moving into Lilly Gateway Labs, we've been able to focus solely on research."
That is how an executive at one resident biotech firm described the biggest change felt since moving in, speaking at Lilly Gateway Labs in the Torrey Pines biocluster in San Diego on Wednesday. With research space as well as research and development (R&D) consulting and an investment network all supported in one place, early-stage biotechs can now concentrate their scarcest resources, time and capital, on research, the executive said.
Gateway Labs, which the reporter toured, had a different atmosphere from typical shared research facilities. Each startup's independent office space and laboratory were connected as one, and the facility was designed so that shared research equipment and meeting facilities could be used together. In the same building was Charles River, a specialized animal testing institution, and the surrounding area was densely populated with various contract research organizations (CRO) and biotech companies, creating an environment well-suited for early-stage biotechs to continue their R&D.
Gateway Labs is an open innovation platform launched by global pharmaceutical company Lilly in 2019. As a core pillar of the "Catalyze360" program, which nurtures preclinical-stage biotechs, it is characterized by support that goes beyond providing research space to include R&D consulting from Lilly researchers, investment coaching, and connections to a global investment network.
Lilly operates customized nurturing programs for each company. It connects experts by therapeutic field to jointly establish research strategies and provides necessary scientific consulting from the preclinical to clinical stages. Investor relations (IR) coaching for investors and connections to a global investor network are also covered. Being a resident company does not guarantee investment from Lilly Ventures, but firms may be reviewed as investment targets once their growth potential is confirmed.
Breanna Stoker, head of Lilly Gateway Labs Europe, said at a briefing that day, "What we are looking for are companies with new science and new platforms," adding, "The most important criteria in selecting resident companies are scientific potential and outstanding talent."
The results have not been small. Companies that have passed through Gateway Labs to date have received more than $3 billion (about 4 trillion won) in investment and pursued the development of more than 150 drug candidates and platforms. More than 400 companies have participated in the program, and over 200 joint research projects and technology exchanges have taken place with Lilly researchers.
Lilly will establish this nurturing model at "C-Lab Outside," which will open next year at Samsung Biologics' (207940.KS) second bio campus in Songdo, Incheon. It is the second base outside the United States, following China.
Behind Lilly's choice of Korea lies the rapidly growing domestic early-stage bio ecosystem. Stoker explained, "Korea is a market that has excellent scientific research capabilities, rapidly growing early-stage biotechs, and the government's active bio industry support policies all at once," adding, "In particular, it has many preclinical-stage companies, making it one of the countries that best fits the Gateway Labs model."
Samsung Biologics and Lilly plan to jointly select and nurture about 30 early-stage biotechs at Series B or below. The residency period is two years on a basic basis and can be extended up to four years. Selection will be conducted jointly according to Lilly's global standards, with scientific potential, research capabilities, and collaboration ability serving as key evaluation factors.
Lee Sang-myung, executive director of Samsung Biologics' Open Innovation Center, explained, "C-Lab Outside is a platform to systematically support the domestic bio ecosystem," adding, "We plan to support the growth of domestic biotechs by linking Gateway Labs' global network and mentoring with the Samsung Life Science Fund and industry development funds."
