South Korean pharmaceutical companies have expanded investments in research and development, influenced by Hanmi Pharmaceutical Co.’s blockbuster out-licensing deals with global drug makers. Three out of two drug makers increased investments in R&D in the first half of this year compared to last year. Ten pharmaceutical companies saw their R&D share against sales exceed 10 percent.

According to a semi-annual report of listed pharmaceutical companies in Korea, 30 drug makers made investments worth 492.5 billion won ($445 million) in total in R&D in the first half of this year. The figure is a 10.5 percent increase from the same period of last year. R&D of the 30 companies accounted for an average of 9.2 percent of sales.

Among the 30 companies, 20 increased R&D investments in the first half of this year compared to last year, of which 10 saw their R&D share surpass 10 percent.

Hanmi Pharmaceutical ranked first in the amount with investment of 69.9 billion won. However, the figure is a 17 percent decrease from 84.2 billion won in the first half of last year. The decrease owes much to shift in investments to other areas such as biopharmaceutical venture sector. The company has initiated so-called Open Innovation that called for open platform to pool ideas and innovations from outside for joint advance in the bio and pharmaceutical sector.

R&D investments of Chong Kun Dang Pharmaceutical Corp. (CKD), Daewoong Pharm and Green Cross Corp. also exceeded 50 billion won in the first half. “They have turned aggressive on R&D upon seeing successful examples,” said Ha Tae-gi, an analyst of SK Securities Co.

CKD increased investments by 30 percent from the first half of last year. The drug maker has been developing 10 novel drugs including autoimmune disorder treatment, anemia treatment and biosimilar drug. Daewoong Pharm also accelerated investments in antiulcer drug and autoimmune disorder treatment. Green Cross has made good results in blood derivative and vaccine.

LG Life Sciences ranked first in R&D share with 18.4 percent. The company was followed by Bukwang Pharmaceutical Ind Co. with 18.3 percent, Hanmi Pharmaceutical with 18.1 percent, Daewoong Pharm with 13.1 percent, Chong Kun Dang Pharmaceutical with 13.1 percent, Korea United Pharm Inc. with 12.9 percent, Dong-A ST Co. with 11.8 percent, Hyundai Pharmaceutical Co. with 11.7 percent, Ilyang Pharmaceutical Co. with 10.9 percent and Green Cross with 10.9 percent.

By Kim Gi-chul

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