Korea’s pharmaceutical industry remains heavily dependent on imported raw materials, but DongKoo Bio & Pharma and Kukjeon Pharmaceutical are betting that local production can reduce dependence on imports..
The two companies announced Monday a partnership to develop non-reimbursed peptide-based active pharmaceutical ingredients (APIs) for obesity treatments.
DongKoo Bio & Pharma CEO Cho Yong-joon (left) and Kukjeon Pharmaceutical CEO Hong Jong-ho signed an MOU last Friday to co-develop and commercialize domestic peptide-based APIs for obesity drugs. (Courtesy of DongKoo Bio & Pharma)
With demand for obesity drugs surging, the companies see an opportunity to position domestically produced APIs as cost-competitive alternatives. DongKoo Bio & Pharma, expanding beyond its core dermatology and urology focus, will lead commercialization efforts, while Kukjeon will leverage its raw material expertise to streamline production and secure regulatory approvals.
“This partnership will address the critical challenge of localizing biotech pharmaceutical raw materials while diversifying our product portfolio,” DongKoo Bio & Pharma CEO Cho Yong-joon said.
Korea’s drugmakers have long struggled with supply chain disruptions and unstable pricing due to reliance on overseas suppliers. Investing in domestic production, DongKoo and Kukjeon aim to mitigate those risks while tapping into the expanding obesity drug market.
The companies plan to integrate R&D and manufacturing, optimize production processes, and obtain domestic and international certifications. A DongKoo spokesperson said its established global network will be key to positioning Kukjeon’s APIs as viable alternatives for international pharmaceutical manufacturers.