Alteogen Joins Growing List of Biotechs Backed by National Growth Fund

The National Growth Fund's support for Alteogen and four other drugmakers this year suggests a strategic shift in how Korean biotech companies finance their growth. By providing capital for late-stage clinical trials and manufacturing expansion, the fund aims to help these companies move beyond a licensing-out model to retain more value from their innovations. Alteogen, for example, plans to produce material for subcutaneous Keytruda and Aflibercept biosimilars internally.

This initiative addresses a common challenge in the biotech sector: the substantial capital required for advanced drug development and production. For companies like Ligachem Biosciences, it means strengthening late-stage trial capabilities, while for SK bioscience, it supports global Phase 3 trials and vaccine plant expansion. Such funding can reduce reliance on early-stage licensing deals, potentially allowing companies to build more robust product pipelines and manufacturing footprints.

The article also points to a potential expansion of the fund's scope to include medical devices and medical artificial intelligence. This would acknowledge that these sectors also require significant capital for trials, regulatory approvals, and market entry. If realized, support for companies like Lunit or Neurophet could provide a similar impetus for growth and self-sufficiency in medical AI and device development within Korea, as industry officials note such investment would have a positive effect.