While speed is crucial in clinical trials, the ability to transfer data across borders is a growing pain point. Data privacy regulations, particularly in China, complicate due diligence and global collaboration, making data portability a key factor for efficiency and a significant hurdle for M&A.
For Korean biotechs, 'thinking globally' often starts regionally. A significant portion of their deals are with other Asian companies. This strategy allows them to combine technologies and create value, using partnerships in markets like Japan as a crucial step before approaching Western markets.
South Korea's biotech sector is poised for a 'J-curve' of rapid growth. However, realizing this potential depends on overcoming two critical hurdles: accessing sufficient capital to fund development through key value inflection points and building local expertise in global clinical strategy.
Unlike markets that can sustain 'me-too' drugs, South Korean biotechs strategically focus on high-risk areas like novel biology and diverse modalities. This high 'innovation quotient' is their necessary and deliberate path to global competitiveness, embracing target and modality risk as a core strategy.
Global pharma companies must be flexible when structuring deals with Chinese biotechs. Many Chinese firms face post-IPO obligations requiring them to retain Greater China rights and be the Marketing Authorization Holder to book revenue, which prevents simple global licensing deals.
A key mindset difference exists between Asian and Western healthcare investors. Asian VCs are often generalists who prefer de-risked, later-stage assets and even invest in infrastructure like hospitals. This indicates a more risk-averse thesis compared to specialized Western VCs focused on early-stage biotech.