CEO eyes AI drug discovery, potential Nvidia ties and global biotech partnerships
Korea Herald correspondent
SAN DIEGO — SK Biopharmaceuticals is strategically investing in artificial intelligence (AI) drug discovery and open innovation, positioning these as the foundational pillars for the Korean drugmaker’s future growth and market leadership.
Lee Dong-hoon, CEO of SK Biopharmaceuticals, highlighted the company’s long-term commitment at a press conference during the BIO International Convention in San Diego. He noted, “It took us almost 30 years to launch Xcopri, as we managed every stage from development to commercialization and sales, a distinctive approach compared to other firms.”
The remarkable success of Xcopri, an effective seizure medicine, propelled SK Biopharmaceuticals to achieve its best-ever first-quarter earnings this year. The company reported 227.9 billion won ($148 million) in sales and 89.8 billion won in operating profit, underscoring the drug’s market impact.
While acknowledging the challenging journey, the CEO stated, “It was a very difficult process, but now Xcopri is poised to become a blockbuster. Although we could follow the same extensive development method for new pipelines, it would take a decade or longer. Therefore, our future strategy will leverage two key approaches: AI drug discovery and open innovation.”
This strategic pivot towards AI closely followed SK Biopharmaceuticals’ announcement of a significant partnership with AI drug discovery company Insilico Medicine. This collaboration aims to accelerate the discovery of innovative drug candidates within the neuroimmune area of the central nervous system (CNS). Notably, Insilico Medicine consistently achieves preclinical candidate nomination in an average of just 12 to 18 months, a stark contrast to the 2.5 to 4 years typically required for traditional early-stage drug discoveries.
Under the terms of this pivotal collaboration, Insilico Medicine is eligible to receive an upfront payment of approximately $4.5 million. The deal’s total potential value could surpass $2.5 billion, contingent upon the achievement of specific milestones and royalties on net sales following successful commercialization.
Reflecting on the growing synergy, Lee recounted, “When the Insilico CEO visited for photos and handshakes, he humorously suggested we could provide SK hynix HBM chips for their collaborative efforts with SK Biopharmaceuticals.”
Lee elaborated on the broader implications, stating, “While it may have been a lighthearted comment, it underscores the strong synergy we possess, particularly as a member of SK Group. This affiliation enables us to potentially leverage support from SK hynix, a recognized leader in AI innovation.”
Addressing inquiries about a potential collaboration between SK Biopharmaceuticals and Nvidia — mirroring the partnerships established by SK hynix and SK Group’s senior management with the global GPU leader — Lee confirmed that the company is actively evaluating various strategic options, though no further details were disclosed at this time.
Turning to the second core pillar for future growth, the SK Biopharmaceuticals CEO highlighted the recent establishment of SK Life Science LinX in New Jersey. This new entity serves as an open innovation space specifically designed to foster and support Korea’s promising biotechnology firms.
Lee explained the vision behind SK Life Science LinX: “Leveraging our extensive experience in the U.S. market, we are creating a vital foothold for Asian companies, including those from Korea, to advance their technology for development and successful commercialization in the U.S. This initiative is what we internally refer to as the ‘East-West bridge‘ concept.”
He concluded, “Rather than attempting to conduct every aspect of business independently, we firmly believe that collaborative efforts are a more fitting and effective strategy for us.”
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