[INTERVIEW] Yuhan USA is searching for its next promising investment

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[INTERVIEW] Yuhan USA is searching for its next promising investment

Published: 11 Jan. 2023, 13:33

Yoon Tae-won, CEO of Yuhan USA, speaks in an interview with reporters on Jan. 9 at the BEI San Francisco hotel, on the sidelines of the annual J.P. Morgan Healthcare Conference in the city. [PARK EUN-JEE]

SAN FRANCISCO — Yuhan, a Seoul-based biopharmaceutical company best known for its licensing of a novel lung cancer treatment called lazertinib, sold under brand Leclaza, has clinched a deal with Yansen to export the drug and is now looking for its next target.

In addition to licensing promising treatments, it is also looking to invest in biotech start-ups doing breakthrough research and development.

In line with its goal, the company set up an incorporated unit in the United States: Yuhan USA. One of the early initiatives involves participating in an investment fund run by 5AM Ventures, a U.S. venture capital firm.

The Korea JoongAng Daily sat down with Yoon Tae-won, CEO of Yuhan USA, to discuss the company’s strategy on venture investment.

Q. What is the top priority of Yuhan USA?

A. Yuhan takes on a two-pronged approach in operating its business. On one side, we license treatments out to third-party drug makers. On the other side, we try to bring in innovative life science technologies and first-class drugs.

Yuhan USA is responsible for carrying out the latter by building network with academia and bio start-ups that conduct early-stage research. In Korea, we might have only a few options, which makes it difficult for us to keep in touch with those doing research in the United States. To get access to the top-tier inner circle of the bio industry, we joined in on 1-trillion-won ($804 million) investment funds jointly run by 5AM Ventures, a U.S. venture capital firm specializing in the life science sector. There are two types of funds. One, called Ventures, is to invest in very early start-ups to provide seed funding. The other, called Opportunities, is more focused on more mature companies with a proven track record and a possibility of financial exit.

Have you seen any results from the joint funding?

We constantly talk with 5AM Ventures about targets of the investment and potential opportunities. Still, given that we entered the fund at the end of 2021, it is still too early to generate a specific result. Yuhan is the only Korean company among strategic investors for the fund.

I think it will take some time to bring about some kind of partnership and collaboration. But as I said before, the primary objective is to be exposed to the vibrant network of up-and-coming biotech start-ups. From that perspective, we’ve been doing well so far. We are scheduled to have a meeting with 5AM Ventures today as they have an office in San Francisco and Boston.

Which area is the company interested in most for investment?

We can say there are three main sectors. First, anticancer drugs — especially immunotherapy and targeted drug therapy. The second is Nonalcoholic steatohepatitis (NASH). Of the different types of therapeutics mechanics, we are looking into a clinical pathway that targets fibrosis. It is very tricky to be indicated for the NASH disease, but recently we’ve been hopeful as companies like Madrigal are showing positive clinical results. The third concerns central nervous system disorders.

The overall financial and stock markets are suffering a downturn. Could this macro-economic situation challenge Yuhan’s bet on its life science investment?

I have heard that Korea’s biotech industry has a challenging time ahead. But the U.S. financing situation is a bit different. Last year, the amount of venture investment committed for biotech start-ups totaled 30 trillion won. And once you made the investment, you should deplete the committed amount within three years. Therefore, the investors are actively on the hunt for targets for their investment.

This is why we recently came across the term dry powder, since many investors have a large sum of funding committed but have not yet allocated capital. For big pharma like Pfizer and Johnson & Johnson, the tendency is more obvious as their cash reserves surpass 100 trillion won.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]