Bio Sector Anticipates Q4 Momentum… Active Technology Transfer

In August, major bio companies signed more technology transfer agreements than anticipated. In particular, leading domestic bio companies such as Hanmi Pharmaceutical, Olix, and Alteogen successfully secured significant contracts.

Research fellow Kim Sun-ah stated, "Unexpectedly, a lot of non-events poured out in August. Especially, Hanmi Pharmaceutical, Olix, and Alteogen also signed contracts this time," indicating that multiple technology transfers occurred despite the summer off-season.

Demand for bio technology transfer in China is currently somewhat quiet. This could be due to global Q3 trends, market saturation, or a shifting theme.

Research fellow Kim Sun-ah explained, "The number of technology transfers in China is a bit quiet. But this could be due to the global Q3 trend I mentioned earlier, or perhaps a saturated atmosphere, or a theme change within it. What's being somewhat anticipated now is a shift to cell therapy," suggesting that the primary focus is moving from ADC (Antibody-Drug Conjugate) to the cell therapy sector.

In the first half of this year, questions were raised about whether Korea's biotech capabilities were lagging behind China's. However, technology transfers, particularly among companies that delivered results, remained active.

Research fellow Kim Sun-ah emphasized, "Even looking at the achievements made up to the first half, there is still potential for technology transfer from companies that are performing well and have tangible results," indicating that companies producing actual results can continue to find opportunities in the market.

Recently, there has been an increase in cases where big pharma companies conceal indications or target information during pipeline acquisitions. This trend can be interpreted as a move to secure competitive advantage in the market or to avoid strategic exposure.

Research fellow Kim Sun-ah stated, "Indeed, big pharma companies are increasingly hiding indications or targets when acquiring pipelines. Such instances have become more frequent," conveying that this strategic shift is observed in the industry.

Despite concerns about the saturation of the Chinese ADC market, Legochembio is differentiating itself by developing next-generation tool ADCs (Antibody-Drug Conjugates). It is responding to market changes with new technologies different from existing ADCs.

Legochembio plans to release data on pipelines using its new tools in the second half of the year. Research fellow Kim Sun-ah explained, "If ADC is saturated in China, that scope of saturation refers to ADCs with existing tools. But Legochembio is a company developing ADCs with new tools, and you should view it that way," advising that patience is needed when observing the company for potential technology transfer.

The biotech market typically experiences an off-season in Q3 and then builds momentum entering Q4. In Q4, positive events such as major conferences and announcements of license-out (technology export) agreements may converge.

Research fellow Kim Sun-ah commented, "Usually, after the Q3 off-season, there's a surge of license-out deals and conference momentum in Q4, and since stock prices are currently suppressed, let's look at Q4, which has momentum," suggesting that an investment approach utilizing Q4's momentum is valid given the current downward pressure on stock prices.