While domestic biopharmaceutical companies have been moving to Boston, USA for global commercialization over the past few years, industry insiders advise that they should challenge entering the US market through thorough preparation.
A total of 20 companies, including △Yuhan USA △Dong-A ST △Huons USA △Voronoi △Standigm △Organoid Science, were established at the Cambridge Innovation Center (CIC) in Boston with the support of the Korea Health Industry Development Organization (hereinafter referred to as Korea Health Promotion Foundation) I am active within CHC.
Park Sun-man, head of the US branch of the Korea Development Organization, said at a CIC press conference on the 6th, “Three local consulting companies are conducting 1:1 mentoring for 20 companies that have moved to CIC.” Representative Han, who leads biotechnology in Boston, emphasized that Korean companies need thorough preparation and patience when entering Boston.
He said, “(domestic companies) appear to be exploring excellent new drug candidates in the United States. Some companies have opened offices in Boston to better conduct clinical trials in the United States.” There are over 1,000 biotechs in Boston, and it’s not easy to find outstanding companies among them.”
“Interaction between people is the most important thing. You need to build a database through different methods, and you need to actively use consulting companies and networks,” he said. It is also important to be able to communicate smoothly with local personnel,” he advised.
US venture capital (VC) and biotech executives all agree that domestic companies must have data competitiveness to attract US investment
An official from the US venture capital (VC) industry said, “US VCs tend to actively invest in early-stage biotechnology. The most important thing in attracting investment is sound science.” “Domestic companies have data solid preclinical and clinical as well. If it is, it can receive sufficient investment from US VCs, and it is also necessary to benchmark US biotech, which produces good results.”
An official with experience in attracting Series A investment in the US said, “What US VCs consider important is competitiveness. After all, science is the most important. US VC officials are look at innovation a lot.” “It is realistically difficult to receive investment if the preparations are not sufficient. Domestic biotechnologies must establish solid science data in order to receive investment from US VCs,” he emphasized.
Some say that biotechs that have entered Boston must understand the end goal of US VCs in order to successfully attract investment.
An official who requested anonymity said, “US VCs are not afraid to invest 100 billion won or 200 billion won in series A or B. Their ultimate goal is M&A (acquisition), not technology transfer ( L / O) the company ” For this reason, VCs invest boldly even if a new drug candidate will be spent more than 200 billion won in phase 2 clinical trials,” he said.
The official said, “VCs prefer to exit (investment return) through M&A, which can generate profits 10 times or 20 times more than the investment amount.” American VCs tend to invest by looking at the big picture.”
