“Last year surpassed 300 billion won in specialty drugs… an important year in total sales of over 500 billion won this year”
“This year’s key word for the company is Digital Transformation (DT)… Accelerating to Corona”
“Open Innovation Center…Provide differentiated step-by-step support and global network”
[팜뉴스=이권구 기자] Handok (CEO Kim Young-jin) will proactively discover differentiated innovative new drugs and next-generation technologies as part of an active response strategy for the’Post Corona Era’ and actively promote’Open Innovation’ to create synergy with partners. In addition, this year, DT (Digital Transformation) will be accelerated, and domestic and foreign biotech shares will be invested and joint research will be actively conducted.
Regarding this year’s management plan, Chairman Kim Young-jin said, “It is expected that this year will be a year in which the competitiveness gap between companies will widen according to how companies quickly accept the post-corona new normal that has been met without sufficient preparation and make it a new opportunity.” Although difficulties due to coronavirus will continue, in 2021, the appearance and speed of accepting change and evolving must be different. After Corona 19, we will make all-around efforts to gain competitiveness and leap forward.”
△ Last year’s achievements and this year’s goals
-In 2020, Handok grew even in the difficult situation caused by Corona 19.
The prescription drug business segment grew by double digits, exceeding 300 billion won in sales. In particular, it has made significant growth in the fields of diabetes and rare diseases, which Handok has strengthened its competitiveness. The diabetes business achieved sales of 75 billion won, and the rare disease business also surpassed sales of 70 billion won. The prescription drug business continues to grow in 2021 and aims to grow by 10%. The over-the-counter medicine and consumer health divisions were affected by the coronavirus in 2020, but as they are gradually recovering, they will drive growth this year.
In particular, the general drug business is aiming to surpass KRW 60 billion in sales, starting with Ketotop this year, and to grow significantly compared to the previous year. The medical device and life science business units achieved sales of 79.5 billion won in 2020. This year, it will continue to grow through the introduction of new products. 2021 is an important year for Handok to exceed 500 billion won in sales. We plan to ensure that the whole of Korea and Germany can grow through the even growth of each business unit.
△ I have a strong commitment to DT
-If you pick one of the keywords for this year, it is DT (Digital Transformation) that will definitely produce results. DT is becoming more important with Corona, and this is also the case in the healthcare field.
Handok has been trying DT a few years ago, and Corona has accelerated it. Handok has been conducting enterprise-wide DT projects under the direction of’Enhancing Company-wide Competitiveness’,’Realizing First-Class Manufacturing Competitiveness’, and’Digital-based Way of Working’. In marketing sales, seminars, symposiums, and product training are already being conducted online, and E-CRM is also being tried.
In addition, digital use in all areas, such as the introduction of smart factory, new dimension SAP for database construction, introduction of clinical trial e-solution, RPA (Robotic Process Automation) project that improves continuous work efficiency, digitalization of education, and team building through online drinking sessions. Will try to increase it. Handok has been preparing DT for several years, and this was a big help when the way of working with Corona 19 changed. Currently, we are operating a highly flexible type of telecommuting that considers the nature of work and working environment, and will continue to do so in the future.
△ New drug development plan and strategy
-Handok is strengthening its new drug pipeline and R&D competitiveness through differentiated open innovation.
The Magok R&D Institute, which will be completed this year, will play an important role in expanding Handok’s open innovation strategy and strengthening research cooperation with Genexine. In addition, it is expected to become a research and development center for the development of new drugs with global competitiveness and expansion of the pipeline. An open innovation center will also be established at the Magok R&D Research Center.
Handok plans to build an eco-system of open innovation by supporting bio-ventures with excellent technologies and providing a comprehensive training system. In addition to the cell therapy and gene therapy fields, which are of high interest in recent years, they are looking at digital therapy with interest. It is also considering investing in Korean startups related to digital therapeutics. In the future, Handok will strive to become an open innovation model that proactively discovers differentiated innovative new drugs and next-generation technologies, and creates synergy with partners.
In addition, Handok is accelerating the development of new drugs by using the AI drug development platform. In January, it signed an AI-based drug development contract with Deargen, an AI drug development company. With Deargen’s self-developed and advanced artificial intelligence (AI) drug development platform, it quickly discovers candidates with a high probability of success and accelerates the development of new drugs. Handok plans to actively use AI in the development of new drugs for various diseases, starting with anticancer drugs.
△ Corona 19 treatment and vaccine development status
-Handok is strengthening its new drug pipeline and R&D competitiveness through differentiated open innovation. In the field of diagnosis,’NB POSTECH’ and’Corona Rapid Antigen Antibody Test Kit’ were developed and acquired the CE mark. This year, it plans to challenge the FDA EUA (emergency use approval) and expand overseas based on its excellent product capabilities. In addition, while collaborating with’Genexine’ in the area of preventive vaccines and treatment, it is developing direct and indirect over the prevention, diagnosis, and treatment of Corona 19.
△ The open innovation strategy
-Handok selected’Open Innovation’ as its future strategy from 2006, when even the concept was unfamiliar in Korea. With more than 14 years of experience, it has secured differentiated competitiveness in target fields and collaboration methods. Handok’s open innovation is progressing in various ways, not just investments. In some cases, joint development is conducted, in other cases, joint development and investment are conducted in parallel, and in some cases, only investment is made.
In addition, there are cases where promising candidate substances are licensed and developed. In open innovation, Handok is focusing not only on the business strengths and synergies of Handok, such as diabetes and rare diseases, but also on laying the foundation for future business, and for this purpose, it is trying to acquire at least a domestic business right.
Handok’s open innovation can be summarized as win-win, innovation, and global. Handok is looking for a flexible way to’win-win’ with partners rather than a uniform model for open innovation. To this end, cooperation models such as R&D spin off, technology transfer, joint research, direct investment, and indirect investment through funds are used.
Handok’s’innovation’ does not matter in any field. Regardless of fields such as pharmaceuticals, diagnostics, and medical devices, they are seizing opportunities and collaborating in biopharmaceuticals, small molecule oncology, dual antibodies, stem cell therapy, and diagnostic/treatment medical devices. Recently, Korea VC (Venture Capital) is increasingly investing abroad, and Handok has already secured an’overseas network’ for a long time as it has grown into a JV (Joint Venture). Based on this, from the beginning of open innovation, it has been seeking innovation not only in Korea but also overseas, and is expanding its global presence in the United States, Japan, and Israel.
Looking at the current status of open innovation, which is currently underway, Genexine and’sustainable growth hormone’, which is being developed, are preparing to apply for phase 3 clinical trials. In addition, the’Pan-TRK’ inhibitory anticancer drug under development with CMG Pharmaceuticals and the National Anticancer Drug Development Project is undergoing phase 1 clinical trials. The anti-cancer antibody ABL001, an anti-angiogenic anti-cancer antibody under development in the ABL Bio Department, will lead a phase 2 clinical trial for patients with biliary tract cancer by Handok starting this year.
Along with this, the hypertension treatment device’Dinex’, which is being developed by Handok Calos Medical, successfully ended a two-year follow-up observation of a clinical trial conducted in Korea in May 2020, and started recruiting patients from confirmatory clinicians in Korea in 2021. It is also planning to start a national clinical trial. ‘NB POSTECH’, a diagnostic medical device venture, and’Rapid Screening Test Kit’, an in vitro diagnostic device based on nanocon technology under development, are planned to be launched in the European market this year to accelerate overseas expansion. In addition, the’Corona Rapid Antigen Antibody Test Kit’, which was developed with NB POSTECH and obtained the CE mark last year, will challenge the FDA EUA (emergency use approval) this year and plan to enter overseas based on its excellent product capabilities.
2021 is a very important year for Korea-Germany open innovation. The Magok R&D Research Center, which is being built jointly with Genexine, will be completed in December. The Magok R&D Institute will play an important role in expanding Handok’s open innovation strategy and strengthening research cooperation with Genexine. In addition, it becomes the center of research and development for the development of new drugs with global competitiveness and extension of the pipeline.
△ Global advancement status and future strategy
-Handok achieved 16.2 billion won in exports in 2020 through exports such as’Amaril’,’Ketotop’, and’Ready Q’. Handok is exporting self-developed, improved drugs,’Amaril M (export started in 2007)’ and’AmarilMex’ to 35 countries around the world.
In the case of ketotop exports in Malaysia, despite the coronavirus, it ranked first in the Hospital & Special Institution (MOH) channel, and the pharmacy market share grew to 30%. Kazakhstan also recorded a significant increase in sales from the existing sales volume. As Ketotop’s licensed clinical trial in Russia is successfully completed in December 2020, exports are expected to expand.
For export last year, ReadyQ focused on strengthening online sales channels and diversifying marketing activities in the Chinese market. As a result of continuing product exposure and sales centering on the Ready-Q flagship store of China’s largest platform, T Mall, it recorded the largest number of visitors and sales since overseas business during the Gwanghwanje/Gwanggunje/Shenxel, China’s largest shopping season. In addition, they are promoting and selling ReadyQ in Taobao/Xia Hongshu/TikTok by collaborating with famous Chinese Wanghongs using Live Commerce, which has a high interest in recent years. This year, in order to continue the rise in brand awareness, the company plans to focus on expanding stores, promoting media in connection with marketing activities, and reinforcing live commerce/content.
R&D is also preparing to enter the domestic as well as overseas markets from the product development stage.
‘Continuous growth hormone drug’ being developed jointly with Genexine,’Pan-TRK inhibitory anticancer drug’ being developed with CMG Pharmaceuticals and New Anticancer Drug Development Project,’Dinex’, a medical device for treating hypertension being developed by Handok Calos Medical, and a diagnostic medical device. It is developing new products targeting the global market, such as venture NB POSTECH and’Rapid Screening Test Kit’, a medical device for in vitro diagnostic use. In addition, the’Corona Rapid Antigen Antibody Test Kit’, which was developed with NB POSTECH and obtained the CE mark last year, will challenge the FDA EUA (emergency use approval) this year and expand overseas based on its excellent product capabilities.
Resolute, which Handok jointly invested with Genexine to reinforce its global competitiveness, is continuing a meaningful move. Resolute is a bio-venture focusing on the development of innovative treatments related to rare diseases.In October 2020, Resolute succeeded in attracting an investment of $41 million (KRW 47.2 billion) in the form of private placement and was listed on Nasdaq.
Handok acquired the commercialization rights in Korea for’RZ358′, an oral plasma kallikrein inhibitor for treating macular edema, and’RZ402′, an oral plasma kallikrein inhibitor for treatment of macular edema, in September 2020 by Resolute to establish a pipeline for diabetes and rare diseases. Strengthened. ‘RZ358′ being developed by Resolute was designated as’Rare Pediatric Disease (RPD)’ by the U.S. Food and Drug Administration (FDA) in June 2020. When Resolute obtains a new drug license for’RZ358′, it will receive a priority evaluation voucher that can be applied as another drug developed.
△ M&A, business diversification plan
-Handok plans to open an open innovation center in parallel with the Magok R&D Research Center. The Open Innovation Center plans to provide step-by-step support and a global network differentiated from existing incubators and accelerators by jointly participating in the R&D ecosystem upgrade.
IVD (in vitro diagnostic medical device) companies and Al-based advanced diagnosis companies that were recognized for their technology during the corona 19 period are increasing. Accordingly, the Hand-German medical business division plans to strategically expand cooperation with excellent domestic bio-diagnostic ventures. In addition, Handok continues to promote equity investment in domestic and overseas biotech, joint research, and open innovation of its own R&D.
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