A surge of billion-dollar licensing deals in early 2025 is reinvigorating South Korea’s biotech industry, signaling renewed confidence from global pharmaceutical giants. These agreements, which grant foreign firms rights to promising drug candidates and development technologies, provide a steady revenue stream while reducing the risks and costs of full-scale drug development.
Beyond new deals, key Phase 3 clinical trial results for previously licensed drugs will be released this month. Analysts say these developments not only showcase South Korea’s global competitiveness but also sustain a virtuous cycle—where licensing proceeds fuel further research and development (R&D).
On March 17, Alteogen, the largest company by market capitalization on the Kosdaq, announced a $1.35 billion licensing agreement with MedImmune, the R&D subsidiary of AstraZeneca. Alteogen specializes in technology that converts intravenous (IV) drugs into subcutaneous (SC) formulations, allowing patients to self-administer treatments at home instead of undergoing lengthy IV infusions at hospitals. This conversion also extends drug patents, making it attractive to global pharmaceutical firms.
Under the deal, Alteogen will develop SC formulations for three of AstraZeneca’s IV-administered cancer drugs. The contract includes an upfront payment of over 66 billion won ($49.7 million), with additional milestone payments tied to clinical and regulatory progress. Alteogen will also receive royalties if the drugs reach commercialization. CEO Park Soon-jae called the partnership a “major breakthrough” that could significantly improve cancer patients' quality of life.
Alteogen’s deal is one of several high-profile agreements signed this year. In February, gene therapy developer OliX Pharmaceuticals secured a global licensing agreement with Eli Lilly worth up to $630 million. The deal grants Lilly rights to OLX702A, a candidate drug for metabolic dysfunction-associated steatohepatitis (MASH) and cardiovascular and metabolic diseases. Under the terms, OliX will complete Phase 1 trials before Lilly takes over development and commercialization.
Another South Korean firm, Genome & Company, signed a licensing deal last month with U.K.-based Ellipses Pharma for its immuno-oncology drug candidate GENA-104. Financial terms were not disclosed.
South Korea’s biotech licensing exports surged from $4.8 billion in 2022 to $5.9 billion in 2023 before dipping slightly to $5.5 billion in 2024. Industry experts attribute last year’s slowdown to the global economic downturn and political uncertainty but expect a rebound in 2025. “Despite last year’s challenges, this year has already seen multiple billion-dollar deals, indicating renewed interest from global pharma firms,” an industry source said.
Key Phase 3 trial results for drugs incorporating South Korean technologies will also be unveiled this month. MSD (Merck & Co.) will present findings at the European Lung Cancer Congress (ELCC) for an SC formulation of Keytruda, developed using Alteogen’s technology. Keytruda, the world’s top-selling drug with $29.4 billion in revenue in 2024, has already demonstrated comparable efficacy between its IV and SC versions, according to MSD.
Additionally, detailed Phase 3 results for a lung cancer treatment co-developed by Yuhan Corporation and Johnson & Johnson’s Innovative Medicine unit will be presented at ELCC. The combination therapy of Yuhan’s Leclaza and J&J’s Rybrevant is expected to extend overall survival by more than a year compared to its competitor, Tagrisso.
Meanwhile, Hanall Biopharma’s batoclimab, an experimental treatment for myasthenia gravis licensed to U.S.-based Immunovant, will also reveal its Phase 3 trial results later this month.
