Medical researcher working in the lab

HD Hyundai, Orion, Daesang and other Korean companies are focusing on the bio industry to achieve new growth as part of their attempts to diversify portfolios in an industry with boundless growth potential, according to industry officials Thursday.

So far, Korea's bio industry has seen entry from some conglomerates such as Samsung, SK and LG. However, other large-sized companies are recently strengthening investments in the bio industry to secure new growth engines at a time when their existing industries face growth limits.

"The reason non-bio companies have been focusing on investing in bio companies recently is that their domestic market business has reached its limits," an official from a local biotech company said on condition of anonymity. "They seem to believe that they can expand business by investing in the local bio firms with strong technology or by starting a bio-related business."

In March, Orion, a local confectionery manufacturer, acquired a 25.73 percent stake in LigaChem Biosciences, an antibody-drug conjugate (ADC) developer, for 548.5 billion won ($400 million).

ADC treatment is called a "next-generation drug" because it works by conjugating antibodies that bind to a specific target antigen on the surface of a cancer cell with a drug that has potent cancer cell-killing properties. LigaChem, which recently changed its name from LegoChem, is a technically capable domestic bio company with a total of four drugs in the clinical stage of testing.

HD Hyundai, a company mainly engaged in shipbuilding, energy and industrial machinery, recently established AMC Bio to carry out a new drug development business and is also running the digital health care subsidiary Medi Plus Solution for patient health management. AMC Bio is derived from Asan Medical Center, the country's largest general hospital, which HD Hyundai operates.

Daesang, famous for its food brand Chungjungone, is also strengthening investment in bio companies as it established Daesang Cellgene in July 2021 to enter the bio sector. The main businesses of this bio unit are manufacturing cosmetics and pharmaceuticals based on biotechnology and researching biosimilar drugs.

The industry official said companies are paying attention to the bio industry, especially novel drug development because if successful, it can achieve great growth.

"Companies are increasing investments in bio companies as part of portfolio diversification, especially in novel drug development in the bio industry because it can bring an unimaginable turning point as seen with MSD's cancer drug Keytruda," the official said.

As the official mentioned, MSD's Keytruda generated $25 billion in sales last year, becoming the world's top-selling drug.