of Pharmaceutical Industry Is Up To Contract Research Organization (CRO)
pharmaceutical companies also outsource clinical trials to foreign institutions...
it is desperate to secure support for the industry to accumulate know-how in
Korea and export new drugs -
been argued that in order to enhance the competitiveness of Korean pharmaceutical
industry development and to export pharmaceuticals and technologies, it is
necessary to focus on fostering the Contract Research Organizations (CRO).
to a specialized institution that pharmaceutical companies outsource clinical
trial design, consultation, data management, and permission in order to reduce
the cost in the course of developing new drugs.
to a report titled “Contract Research Organization (CRO) Related Service Market Status
and Overseas Expansion Plan” issued by the Institute
for International Trade (President: Shin Seung-kwan) of the Korea International
Trade Association on March 18th, the CRO industry in Korea grew remarkably
by 11.5 percent annually from 294.1 billion won in 2014 to 455.1 billion won in
2018. During the same period, the sales of Korean CROs also increased by an
annual average of 21.1 percent and expanded the domestic market share, which
had been dominated by foreign CROs, from 33.3 percent in 2014 up to 46.3
percent in 2018.
this, exports of the bio-service sector, such as clinical trials and
pharmaceutical contract manufacturing led by Korean CROs, have shown impressive
growth trajectory of 36.3 percent every year from 339.8 billion won in 2016 to
631.3 billion won in 2018. In addition, the exports of new drug technologies
from the domestic pharmaceutical industry also increased from 2.31922 billion
dollars in 2016 to 3.96040 billion dollars in the first half of 2019, reaching
a turning point of becoming the country with sophisticated pharmaceutical
despite those growths, Korean pharmaceutical industry’ global market share
remains at 1.2 percent and that of Korean CRO industry stays at 3.2 percent.
2000, global CROs have entered into the Asian and Korean markets in earnest,
and Korean pharmaceutical companies have preferred foreign CROs considering overseas
expansion of new drugs,” and pointed out, "When
using a foreign CRO, problems such as high cost burden compared to using a
Korean CRO and the risks of new drug technology, data, and research and
development (R & D) know-how leakage may emerge."
the report said, “In order to accumulate new drug development experiences and know-how
in Korea and to enhance the country’s competitiveness, it is required to
actively encourage cooperation between Korean pharmaceutical companies and
Korean CROs," and advised, "It is necessary to prepare the foundation
for support policies by establishing the CRO industry within the Standard
Industrial Classification and stating CRO industry through the revision of the
laws related to the pharmaceutical industry and foster professionals.”
Jin-hyung, a senior researcher at the Institute for International Trade of the
Korea International Trade Association, said, “If collaboration within the industry is
efficiently conducted through CRO industry support, it will be a successful
case of synergy creation through the convergence of manufacturing and service.” He also mentioned, “CRO is not only a
promising industry for the next generation, but also should be fostered by the
government in order to be prepared for the future epidemics such as COVID-19.”