In a noteworthy global trend, South Korean pharmaceutical companies are actively embracing artificial intelligence (AI) for the development of novel drugs. Key players in the industry share a unanimous belief that Korea is aligning itself with this transformative convergence of pharmaceuticals and AI.

According to industry sources on January 26th, the Korea Pharmaceutical and Bio-Pharma Manufacturers Association (KPBMA) took a proactive step in August of the previous year by establishing an AI drug development team. The collaboration between Korean pharmaceutical and bio-pharma companies and AI firms surged from 5 in 2019 to an impressive 40 in 2023. Notable entities, including Yuhan Corporation, Hanmi Pharmaceutical, Daewoong Pharmaceutical, Dongwha Pharmaceutical, Samjin Pharmaceutical, and JW Pharmaceutical, are at the forefront of developing new drugs through AI.

For instance, Yuhan Corporation and Hanmi Pharmaceutical are deeply involved in the research and development (R&D) of anticancer drugs. They utilize the 'AIGEN Discovery' AI platform, provided by Aigen Sciences, for comprehensive data-driven drug development. Through this platform, they identify and propose new candidate substances for anticancer drugs, with each company evaluating the feasibility of incorporating these substances into their pipelines.

Daewoong Pharmaceutical has been a trailblazer in AI utilization, entering a partnership with the U.S. biotech company A2A Pharma in 2020 for collaborative anticancer drug R&D. Subsequently, in March 2021, Daewoong Pharmaceutical signed an agreement with the AI-based new drug development specialist OncoCross, conducting joint efforts in discovering and validating new drug candidates.

Other pharmaceutical companies, such as Dongwha Pharmaceutical, Samjin Pharmaceutical, and JW Pharmaceutical, along with JW Pharmaceutical's subsidiary C&C New Drug Research Institute, have signed memoranda of understanding (MOUs) with the U.S.-based AI new drug development company XtalPi.

The integration of AI in drug development is driven by its effectiveness in time and cost management. AI can be applied across the drug development process, from identifying potential candidates to clinical trials. In the identification phase, AI enables extensive literature exploration, reducing the development cycle from 15 years to 7 years. Additionally, AI aids in predicting drug interactions, minimizing trial and error in clinical trial design and playing a pivotal role in stages such as pharmaceutical manufacturing and regulatory approval during clinical progression.

The scale of AI drug development companies has also expanded. A survey by the Korea Artificial Intelligence Support Center on 15 AI drug development companies revealed a total pipeline count of 104 as of April 2023, with 71 in the development stage, 26 in the preclinical stage, and 7 in clinical stages (cancer, neurological disorders, cardiovascular diseases, etc.).

A representative from the center highlighted, "As of 2022, the investment landscape for 29 AI drug development companies indicates a cumulative investment surpassing $452 million, signaling growth in the ecosystem of AI drug development companies." The representative further emphasized, "The impact of AI on new drug development is expected to remain significant in the future."

Buoyed by this burgeoning trend, the KPBMA recently expanded and restructured the AI Drug Development Support Center, established in 2019, elevating it to the 'AI Drug Convergence Research Institute.' This underscores the industry's ongoing commitment to integrating AI and pharmaceutical technologies for further advancements.