Samsung Group is targeting the gene therapy business through investments in US biotechnology companies as the leading South Korean conglomerate is seeking new growth engines for its medical units.
The Life Science Fund established by the group’s de facto holding company Samsung C&T Corp., Samsung Biologics Co. and Samsung Bioepis Co. have decided to invest in two US gene therapy developers, including Latus Bio, according to sources of the South Korean bio and investment industries on Tuesday. The fund was known to have already injected money into the other company, those sources said without giving details such as the firm’s name and the investment value.
Latus Bio based in Cambridge, Massachusetts, develops curative medicines for neurological diseases utilizing adeno-associated viruses (AAVs), which are used as an effective delivery system for therapeutic genetic material into living tissue.
Samsung Biologics President & CEO John Rim said the world’s top contract manufacturing organization was considering the expansion into the AAV sector in the contract drug development business at the JP Morgan Healthcare Conference 2024 in January.
GENE THERAPYSamsung Group has reportedly decided to focus more on gene therapy than cell therapy as a next-generation growth engine as the treatment of disease by transfer of genetic material into cells is well-suited to the existing facilities and production processes, according to sources in Seoul.
Gene therapy is usually used for the treatment of rare diseases that cannot be cured by the existing antibody drugs, while its application can be extended.
AAVs are widely used as gene delivery vehicles for various medicines such as Pfizer Inc.’s Beqvez, gene therapy to treat certain adults with hemophilia B.
Global contract development and manufacturing organizations including Catalent Inc. and WuXi Biologics have already been working on the AAV CDMO business.
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Samsung is kind of lagging since other major global drugmakers have already been producing CGTs,” said a bio-industry source in Seoul, referring to cell and gene therapies. “I hope Samsung can create synergy between research and development, as well as manufacturing, through these measures.”
Write to Jeong Min Nam at
peux@hankyung.com
Jongwoo Cheon edited this article.
