75% of New Drugs Are External—Bayer Urges Early, Trust-Based Partnerships

When Korean biotech companies seek partnerships with global pharmaceutical firms, what matters most? To find the answer, Hit News met with business development leaders from major global firms at BIO USA 2025, the world’s largest biotechnology convention, held this year in Boston.

Among them was Dr. Juergen Eckhardt, Head of Business Development and Licensing (BD&L) at Bayer. “Trust is just as important as data,” he emphasized in an exclusive on-site interview.

Dr. Eckhardt clearly stated that Bayer has no geographic bias in its partnerships: “We have no regional prejudice,” he said, underscoring Bayer’s growing interest in biotech firms across Asia, including Korea. Bayer’s current focus areas include oncology, cardiovascular-metabolic-renal (CMR) diseases, inflammation and immunology, women’s health, and ophthalmology. Within oncology, its strongest interests lie in solid tumors—specifically prostate, colon, liver, pancreatic, and lung cancers—while hematologic cancers are a lower priority.

Bayer’s BD strategy is centered on early-stage assets. According to Dr. Eckhardt, the company’s “sweet spot” lies between preclinical proof of concept and Phase 1 trials. “Engaging at this stage allows us to co-shape development and build a partnership that can extend through regulatory approval,” he said.

While Bayer occasionally pursues later-stage deals, he noted their limitations. “An asset might be worth $2 billion but cost $5 billion to acquire—and there’s still risk, because the product isn’t fully validated.” Early-stage deals, in contrast, require smaller capital outlay and allow for staged investments tied to development milestones, enabling better risk management.

The evaluation criteria differ by stage: for pre-IND programs, Bayer reviews the regulatory package; for Phase 1 assets, early clinical data is key; and for preclinical PoC candidates, the focus is on scientific potential and supporting data. “We typically start with modest investments and expand our commitment as we validate the asset,” he added.

Bayer applies clear criteria when prioritizing 1:1 meetings with potential partners. “Our interest in the therapeutic area, the stage of development, and prior data-sharing experiences are key factors,” Dr. Eckhardt explained. “We prefer to meet companies with whom we’ve already exchanged data, allowing for deeper discussions on partnership potential.” In other words, companies with established communication and trust are given priority.

He highlighted “robust scientific data and a trustworthy team” as the defining traits of a strong biotech company. “Bayer actively seeks innovative technologies worldwide without regional bias,” he added, emphasizing the company's growing engagement with biotech firms across Asia, including Korea. In fact, Bayer recently signed an early-stage deal in China and has been in direct contact with companies in Korea and Japan through on-site visits by its BD team.

When asked what Korean biotechs should prepare for successful partnerships with global pharma, Dr. Eckhardt stressed the importance of early and consistent engagement. “It’s critical to reach out to us as early as possible and keep us updated on progress to build trust,” he said. “It’s rare for a deal to be closed within three months of first contact. Most partnerships are built through steady communication over one to two years.”

Bayer is also modality-agnostic when it comes to collaborations. “From small molecules to gene and cell therapies, Bayer has expertise across nearly all modalities. If Korean companies bring innovation in any of these areas, we’re ready to evaluate and engage,” he said.

To further support the global innovation ecosystem, Bayer operates the Bayer Collabs program, which provides startups with lab space, offices, and—most importantly—access to expert mentorship in drug development, toxicology, and regulatory affairs. With locations in Boston, Berlin, Shanghai, and Japan, the program aims to foster close collaboration with Bayer to help optimize assets and advance technologies.

Dr. Eckhardt emphasized that external innovation has become a central pillar of global pharmaceutical business development. “Just a few decades ago, most R&D took place within big pharma. That’s no longer the case,” he said. According to recent data, nearly 75% of new drugs approved by the U.S. FDA now originate from small to mid-sized biotech companies.

“We’re in an era of explosive growth in biological knowledge and new therapeutic modalities such as cell and gene therapies,” he added. “It’s no longer feasible for a single pharmaceutical company to cover all these areas internally.” While large pharma companies once dominated with in-house small molecule development, today’s innovation is driven largely by startups, academia, and venture-backed biotechs—reshaping the industry's landscape.

In response, Bayer has positioned external innovation and co-development at the core of its corporate strategy. “BD is no longer just about sourcing technologies—it now drives Bayer’s strategic direction,” Dr. Eckhardt explained. “We prioritize building trust with biotech partners early and expanding their potential through sustained collaboration.”

As part of this strategy, Dr. Eckhardt introduced Leaps by Bayer, the company’s impact investment arm. Rather than traditional licensing, Leaps makes minority equity investments in startups with high-impact, early-stage platforms. “This allows us to identify breakthrough technologies early, de-risk development, and lay the foundation for future partnerships or acquisitions,” he said.

He also highlighted Bayer’s use of the Arm’s Length Model, which maintains the operational independence of acquired companies like BlueRock and AskBio. “Preserving their innovation culture and talent is critical,” he noted. “This model helps us integrate external innovation while gradually enhancing our in-house capabilities.”

Dr. Eckhardt concluded by encouraging Korean biotech firms to engage confidently in global markets. “Biotech is a borderless industry,” he said. “I look forward to seeing more Korean biotechs participating in international conferences and forming meaningful global partnerships.”