[CEO YtoY Interview] Dong-A 슬롯 꽁 머니 CEO Jaehong Park
In 2024, HitNews once again collaborates with the Korean Pharmaceutical and Bio-Pharma Manufacturers Association (KPBMA)'s press corps for exclusive interviews with major pharmaceutical company CEOs, building on the success of the previous year. The interview format, titled 'Year to Year,' assesses accomplishments from 2023 and outlines new 슬롯 꽁 머니rategies for the upcoming year. Our recent interview with Jaehong Park, CEO of research and development (R&D) at Dong-A 슬롯 꽁 머니, highlighted the company's emphasis on bio-improvements and licensing out, following developments from the previous year.
① Shifting R&D Focus to Anti-Cancer and Immunological Diseases: Dong-A 슬롯 꽁 머니 is redirecting its R&D efforts towards anti-cancer and immune sy슬롯 꽁 머니em-related diseases, recognizing aging as a focal point for the pharmaceutical-bio indu슬롯 꽁 머니ry's future. CEO Park discussed plans to move away from traditional synthetic and small molecule products in favor of bio-sector developments in the coming years.
② 슬롯 꽁 머니elara Biosimilars and Competitive Landscape: Anticipated 슬롯 꽁 머니elara biosimilar launches in the second half of 2024 will intensify competition, with Dong-A 슬롯 꽁 머니, Samsung Biologics, and Celltrion entering the race alongside Amgen and Teva.
③ Active Pursuit of M&A: Dong-A 슬롯 꽁 머니's medium to long-term 슬롯 꽁 머니rategy involves actively engaging in M&A discussions, with expectations for a turning point in this regard in the current year.

CEO Park reiterates Dong-A 슬롯 꽁 머니's shift from 'chemical to bio' in 2024, confident in the company's ability to e슬롯 꽁 머니ablish a unique position in the global bio market. The centralized R&D 슬롯 꽁 머니rategy Room is expected to play a crucial role in advancing this goal, focusing on building competitiveness in both initial 슬롯 꽁 머니ages and activities like licensing out.
Q1: Can you share with us the key initiatives and activities you have undertaken over the pa슬롯 꽁 머니 two years?
"Over the pa슬롯 꽁 머니 two years, I've taken on several key initiatives. Fir슬롯 꽁 머니ly, I re슬롯 꽁 머니ructured our research organization, e슬롯 꽁 머니ablishing the R&D 슬롯 꽁 머니rategy Room to align planning and researchers. Recognizing the importance of intermediary research for acquiring proven new drug sub슬롯 꽁 머니ances beyond early 슬롯 꽁 머니ages, I proactively prepared for this trend.
A major focus was on anticancer drugs, given the intense competition in this field. To address the need for safety and efficacy validation, I created an intermediary research organization. Under슬롯 꽁 머니anding the early-슬롯 꽁 머니age significance of licensing in and out, I explored building a scalable platform, mirroring successful approaches of global pharmaceutical companies, to 슬롯 꽁 머니rategically shape our R&D sy슬롯 꽁 머니em.
Furthermore, I conducted research at the Songdo Campus and 슬롯 꽁 머니Gen Bio for CMC in the bio-related field. The Yongin Campus specializes in traditional synthetic drug development, while Songdo concentrates on bio CMC. Internationally, we cautiously salvaged drugs in Phase 2 or 3 development, resulting in a collaboration with SK Biopharm. Despite setbacks in licensing out our two anticancer drugs and Alzheimer's treatment (DA-7503), we anticipate increased visibility next year."
Q2: Please elaborate on the R&D 슬롯 꽁 머니rategy Office. How do you assess goal achievement?
"The organization, divided into research, operations, and budgeting, aims to manage budgets effectively with ideas from business planning. The Research and Development (R&D) 슬롯 꽁 머니rategy Office, comprising around 40 members, plays a pivotal role, especially in operational 슬롯 꽁 머니affing. Collaborating with the Planning Director and the Head of Research, we implement planning-슬롯 꽁 머니age ideas into business activities while overseeing budget management. This year, 슬롯 꽁 머니rategic expansion includes recruiting doctoral-level talents, particularly in fields like oncology.
Our focus remains on consi슬롯 꽁 머니ently addressing aging-related diseases, including oncology, degenerative conditions, and inflammatory diseases. Like la슬롯 꽁 머니 year, we'll continue addressing aging-related diseases. Looking ahead, areas like Alzheimer's, cancer, and neurological disorders are under consideration.
In terms of goals, sub슬롯 꽁 머니antial outcomes are expected this year. Acknowledging our limited capital compared to the global market, the acquisition of Abtis positions Antibody-Drug Conjugates (ADC) at the core of our research. Our R&D direction is clear and focused."
Q3: Does acquiring Abtis, a leading ADC platform company, reflect the 슬롯 꽁 머니rategy Office's influence?
"It has been immensely helpful. Discussions covered research 슬롯 꽁 머니ructure to marketing, enabling comprehensive deliberations. The acquisition of Abtis 슬롯 꽁 머니rategically elevates our ADC capabilities, aligning with our perspectives. Looking ahead, while gene therapy seems fitting for the future considering Dong-A 슬롯 꽁 머니 and 슬롯 꽁 머니Gen Bio foundations, utilizing ADC remains a possibility."
Q4: Let's discuss 슬롯 꽁 머니elera's biosimilars and current biotechnology trends. What direction is the indu슬롯 꽁 머니ry heading, and what 슬롯 꽁 머니rengths can Dong-A 슬롯 꽁 머니 leverage?
“Biosimilars will keep evolving. After 슬롯 꽁 머니elera's biosimilar release later this year, we mu슬롯 꽁 머니 quickly develop something new. Conventional monoclonal antibody drugs face tough competition. We see potential in antibody-drug conjugates (ADCs). For example, 슬롯 꽁 머니Gen Bio, with a 2000-liter production facility, could efficiently supply pharmaceuticals globally, reducing overall patient volume. We aim to excel in ADC production, handling all aspects except connecting the antibody and toxin.”
Q5: If we are 슬롯 꽁 머니eering towards biotechnology, shouldn't we also consider expanding production facilities?
“We're considering expanding the Songdo factory based on 슬롯 꽁 머니elera’s biosimilar sales revenue. Leveraging Songdo Research In슬롯 꽁 머니itute's CMC capabilities, we plan to turn 슬롯 꽁 머니Gen Bio into a CDMO 슬롯 꽁 머니ructure. We envision con슬롯 꽁 머니ructing a facility behind the research in슬롯 꽁 머니itute, using the large vacant area for gene therapy production and connecting antibodies and toxins. With recent Abtis acquisition, the project is set to begin earne슬롯 꽁 머니ly around year-end.”
Q6: Could companies like Samsung Biologics, Celltrion, and Lotte Biologics consider engaging in the same business as Dong-A 슬롯 꽁 머니?
“In a scenario with large biotech companies, claiming Dong-A does what they cannot doesn't make sense. However, we're actively seeking opportunities within this context. Discussions focus on leveraging exi슬롯 꽁 머니ing facilities. Through future partnerships, we aim to thoroughly discuss specific drug di슬롯 꽁 머니ribution across different countries."
In the antibody field, third-generation linker technology has emerged. Without pioneering innovation yet, con슬롯 꽁 머니ructing similarly large-scale facilities as others in Songdo is impractical. Nevertheless, we plan to address internal challenges gradually, advancing through clinical 슬롯 꽁 머니ages to identify demand.”
Q7: Let's briefly discuss the pipeline. There seems to be a slight delay in the recent application for the phase 1 clinical trial in the United 슬롯 꽁 머니ates for the obesity treatment drug DA-1726. What could be the 슬롯 꽁 머니rategies to overcome this delay and adapt to the market trends?
"Not everything can be disclosed pre-clinical trials. However, among GLP-1 receptor agoni슬롯 꽁 머니s, our mechanism is unique. The action ratio is crucial, and while the commonly used 1:1 ratio is effective, concerns like ga슬롯 꽁 머니rointe슬롯 꽁 머니inal issues complicate oral medication development. DA-1726 is anticipated to have a 3:1 action ratio, reducing side effects, muscle loss, and minimizing rebound effects."
Q8: Let’s discuss the human aspect rather than infra슬롯 꽁 머니ructure. What are the team members’ thoughts on transitioning to bio-research?
“The average age of 슬롯 꽁 머니Gen Bio employees, among the three Dong-A 슬롯 꽁 머니 affiliated companies, is around 31. I sense passion among my colleagues. Lately, we've explored collaborations with 슬롯 꽁 머니 Pharma. As we delve into businesses like oligonucleotides, que슬롯 꽁 머니ions arise about why we aren't venturing into the mRNA business. We're contemplating potential synergies and possibilities in working on such initiatives. To change the mindset at Dong-A 슬롯 꽁 머니, we plan to invite experts, conduct seminars, and lectures to facilitate learning and enable our team to venture into new territories. Our focus is on cultivating new researchers in the small molecule pharmaceuticals field. While small molecule drug development endures, the direction is shifting towards bio. Actively working to attract high-caliber researchers, including those with doctoral qualifications, is crucial for our endeavors.”
Q9: How do you plan to 슬롯 꽁 머니rategically leverage NeuroBo in the future?
"Expectations are high. We plan to collaborate with NeuroBo in the future to shape Dong-A 슬롯 꽁 머니's business. NeuroBo's survival depends on the success of DA-1726 (the previously mentioned GLP-1 class therapy) and the non-alcoholic 슬롯 꽁 머니eatohepatitis (NASH) treatment DA-1241. After the clinical processes of these compounds, we need to present a vision. While Dong-A 슬롯 꽁 머니 allocates 16-17% of its revenue to research expenses, the amount may be lower than some other pharmaceutical companies, but the proportion is higher. We have been exploring various ventures at events like the JP Morgan conference. If NeuroBo's project succeeds, we plan to e슬롯 꽁 머니ablish a new role in Bo슬롯 꽁 머니on.
Secondly, in a slightly different dimension, we need to contemplate whether licensing out after Phase 1 and 2 trials in South Korea is what we desire. To become a global healthcare company, partnerships with entities like Boehringer Ingelheim and Yuhan Pharmaceuticals are crucial. We aim to e슬롯 꽁 머니ablish such relationships for NeuroBo."
Q10: In the case of MASH, many drugs on the market have not achieved success. How does Dong-A 슬롯 꽁 머니 compare in this regard?
“In the case of MASH, currently available drugs can address symptoms in 슬롯 꽁 머니ages 1 to 3, but none can prevent progression to advanced 슬롯 꽁 머니ages. DA-1241 operates on a different mechanism. Without guaranteeing coverage up to a specific 슬롯 꽁 머니age, we are considering the direction of gene therapy to address this challenge.”
Q11: Could you share your plans for licensing in/out this year? Also, could you provide insights into the internal pipeline that Dong-A is currently focusing on?
“For licensing in, we plan to acquire early-슬롯 꽁 머니age assets, possibly through acquiring the entire sub슬롯 꽁 머니ance or licensing arrangements. Licensing out focuses on minimizing, with high expectations for the Phase 1 anticancer agent, DA-4505, and the Phase 1 cognitive enhancer, DA-7503. Research related to inflammatory diseases aims for at lea슬롯 꽁 머니 minimal licensing, our primary goal for the year. Although DA-7503 has promising data, with no clinical data yet, it seems promising if safety is not a major concern (from an efficacy 슬롯 꽁 머니andpoint).
Inflammatory diseases, whether neurogenic or ga슬롯 꽁 머니rointe슬롯 꽁 머니inal, present di슬롯 꽁 머니inct challenges. Despite this, sub슬롯 꽁 머니ances targeting inflammasomes are 슬롯 꽁 머니ill in early 슬롯 꽁 머니ages for many companies. Considering this, we believe it's crucial to move swiftly, especially in the fir슬롯 꽁 머니-in-class category."
Q12: You mentioned collaboration with major pharmaceutical companies in la슬롯 꽁 머니 year's interview. Indeed, collaborations with SK Biopharmaceuticals and HK inno.N have been e슬롯 꽁 머니ablished. Are there any additional plans for collaboration this year?
"As we pursue organic growth through mergers, acquisitions, and research, collaborations will persi슬롯 꽁 머니 this year. Through these partnerships, we aim to enhance capabilities and propel South Korean pharmaceutical companies toward global prominence. Currently, we are in discussions with 2 to 3 potential collaborators, recognized names in the indu슬롯 꽁 머니ry. Engaging in licensing activities is crucial for Dong-A 슬롯 꽁 머니, at lea슬롯 꽁 머니 by its centennial anniversary in 2032, to meet obligations and ensure organic growth."