Korea Investment Partners has been selected as the lead manager for the country's first Clinical Phase 3 specialized fund, a long-standing aspiration for domestic pharmaceutical and biotech companies' global new drug development, with 150 billion won in funding support expected to accelerate in earnest.

The Ministry of Health and Welfare announced today the selection of Korea Investment Partners and clarified that this fund is a policy fund designed to address the investment gap in the late-stage clinical phase, which requires substantial funding during the new drug development process, and to support clinical completion and commercialization. Late-stage clinical trials for new drug development have high success potential, but have suffered from chronic investment difficulties in the domestic investment ecosystem due to massive capital requirements and high risk levels. This fund formation reflects the government's strong determination to resolve these issues and strengthen global competitiveness in new drug development.

Korea Investment Partners plans to concentrate more than 60% of the fund's target formation amount of 150 billion won in concentrated investments in approximately 10 pharmaceutical and biotech companies that possess innovative new drug and biobetter pipelines and are actively pursuing Phase 3 clinical trials. In particular, the government permits a "priority formation method" that initiates investment early if 80% of the fund's target formation amount, 120 billion won or more, is secured, to encourage rapid fund execution. This is intended to accelerate the pace of clinical progress and provide timely funding so that companies can focus on Phase 3 clinical trials.

[Photo=Yonhapnews]

This Phase 3 clinical specialized fund, along with the K-Bio and Vaccine Fund in formation since June, is expected to serve as a turning point that elevates the domestic pharmaceutical and biotech industry investment ecosystem to the next level. If both funds are successfully formed, a total of 949.6 billion won in funding will be secured, bringing the government's goal of "forming a 1 trillion won mega fund" one step closer. This is evaluated as an important opportunity for domestic pharmaceutical and biotech companies to establish a sufficient financial foundation for developing global blockbuster new drugs.

Sung Chang-hyun, Director of the Health Industry Policy Bureau, stated that "this fund will be a catalyst for leap forward for companies that have hesitated with late-stage clinical trials due to lack of funds," expressing his commitment to "actively support new drug development with global competitiveness." Noh Yeon-hong, Chairman of the Korea Pharmaceutical and Biotech Association, also expressed expectations that "this fund formation will serve as an important catalyst for domestic pharmaceutical and biotech companies to overcome financial difficulties and create global blockbuster new drugs," emphasizing sustained cooperation between the government and industry.

The collaboration between the Ministry of Health and Welfare and Korea Investment Partners holds significant meaning in that it has established a solid financial support system enabling the Korean pharmaceutical and biotech industry to play a leading role in the global market. Going forward, attention is focused on whether this fund will serve as a key driver promoting innovative new drug development and leading sustainable growth of the domestic bio industry.