Seoul, Sep 12, 2007: South Korea’s largest biotech show BioKorea 2007 opened today in Seoul. In its second edition, this year, the three-day event (September 12-14, 2007) is expected to record over 3,000 participants from across the globe. On schedule are 147 speakers who will share their knowledge and experience with the local industry in the conference session organized in parallel tracks on subjects ranging from contract manufacturing, drug discovery, bioinformatics to technology transfer in Asia. Of these speakers, close to 50 percent are from overseas.

 

The conference and trade show area packed with industry leaders and students from the many Korean universities showcased the excitement and optimism that is running through the biotechnology industry at this point of time. The government in South Korea has identified biotechnology as the key growth engine for the country. Most recently, the “biomedicine and organ project” has been included among the 10 next generation growth engines, for which the government support and funding has been stepped up. To strengthen South Korea’s R&D and infrastructure, the government has made an annual commitment of over $60 billion spread across segments. 

 

The country’s biotechnology industry comprises 600-odd companies, spread across four regional bio-clusters and 25 centers. Of these 71 percent companies are working in the area of biomedicine followed by bio-processing and equipment.

 

The industry here has attracted the attention of Novartis Venture Fund (NVF). This $550 million private equity fund operated by multinational pharmaceutical Novartis International AG has entered the Korean equity market. Setting the ground for the event, Dr Anja Koenig, Managing Director, NVF, met-up with close to 100 Korean industry leaders at a breakfast meeting to share that this private equity fund is all set to enter the Asia market and has made a beginning with India and Korea. South Korea’s biotechnology industry on an average has been growing at over 13 percent every year. From $800 million in 2000 the biotechnology industry here grew to record $2.7 billion in revenues in 2005.

 

Making a point Dr Koenig, said that the fund would be willing to bet on emerging bio-businesses with a longer time horizon for exit. According to her, this is also the key differentiator between NVF and the other local venture capital funds that usually aim for return on their investment in a time span of three years.

 

The plenary session of the conference saw another encouraging announcement. The next edition of BioKorea would be held in October 2008 at Osong Bio-Technopolis located in Chungbuk, Korea. Osong complex is the country’s first bioengineering cluster. Launched in 2003, the project is scheduled to finish and be ready for occupation by December 2007. About 22 companies, including CJ Corp., and Jeil Pharm have signed contracts to move into the complex. 

 

This cluster, part of a long-term development plan to help the country join the ranks of the world’s top 10 bio-science powerhouses by 2010, will also house the nation’s four largest state-run health and medical bodies—the Korean Food and Drug Administration, the National Institute for Toxicological Research, the Korea Center for Disease Control and Prevention (KCDC) and the Korean Health Industry Development Institute (KHIDI).