Korean pharmaceutical and biotech companies are expanding into the materials business. The push is seen as a strategy to secure stable revenue streams amid anticipated policy changes such as drug price cuts and the inherently long timelines required for new drug development. Some firms are already generating tangible revenue from electronic materials, translating the effort into higher corporate valuations.
According to industry sources on Thursday, domestic pharma-bio companies are broadening their scope beyond drug-centered business structures into precision chemicals and electronic materials including semiconductors. Cell therapy developer Pharmicell (005690.KQ) and active pharmaceutical ingredient (API) maker Kukjeon Pharm (307750.KQ) are leading examples.
Pharmicell developed the world's first stem cell therapy, Hearticellgram-AMI. Its key pipeline includes Cellgram-LC, a treatment for alcoholic liver cirrhosis currently in Phase 3 clinical trials. The company entered the materials business in earnest after acquiring IDBChem, a subsidiary producing APIs and precision chemical products, in 2012. Through its biochemical division, Pharmicell produces and sells pharmaceutical intermediates such as nucleosides, eco-friendly phosphorus-based flame retardants, and industrial precision chemical products.
