"Macrogen and Chunlab Inspire New Challenges in Bio Startups

Seven out of ten Seoul National University professors who founded companies chose the high-growth potential bio sector. This year alone, five new bio ventures have been launched.

The fields span widely, including in vitro diagnostics, anti-cancer drugs, and medical devices. As technology transfer revenue grows, the university is actively supporting faculty startups.

Seoul National University professors are increasingly jumping into bio ventures, which are emerging as a new growth engine for Korea’s economy. According to university data obtained on November 5, 2020, 65 full-time professors launched startups between 2016 and October 2020. Among them, 43 chose bio, highlighting the strong appeal of K-bio. About seven out of every ten professor-led startups were in the bio field. The new ventures aim to follow in the footsteps of first-generation bio success stories like 'Macrogen' in the late 1990s and 'Chunlab,' founded in the late 2000s and listed on KOSDAQ.

Despite fundraising challenges caused by COVID-19, five new bio ventures have been founded this year, including 'The Doni,' established by Professor Kangwon Lee of the Graduate School of Convergence Science and Technology in October. The Doni focuses on developing an in vitro diagnostic device that enables chronic kidney disease patients to easily check their potassium ion levels. For such patients, a rapid rise in potassium can cause paralysis due to heart and muscle relaxation. Professor Lee noted that a prototype is in production and aims to begin clinical trials next year, complete regulatory approvals swiftly, and launch commercially by 2022.

Other startups founded by SNU professors this year include Jaymecem (developing pain treatment drugs), H-Machines and SapienMed (developing medical devices), and Galux (protein-based new drugs). Another SNU-born biotech, Abion, founded by Professor Young-gi Shin, is now close to its KOSDAQ listing with a cancer drug in development.

SNU is building stronger foundations for faculty entrepreneurship. Last year, the university introduced a special provision to ease restrictions on commercial work and concurrent positions. It is also pushing a new rule requiring professors to transfer 5% equity to the university when founding companies. While professors may feel burdened by the rule, SNU argues it strengthens infrastructure support and fosters co-growth with university ventures.

Between 2016 and 2020, the SNU Industry-Academic Cooperation Foundation signed 54 tech-transfer contracts with faculty ventures—93% of them with bio startups. These contracts generated 2.385 billion KRW in revenue, with 95% (2.258 billion KRW) coming from bio sector deals. For example, Ticaros, founded by Professors Kyungho Choi and Eunyoung Choi, recently signed a technology transfer contract with the university.

Still, challenges remain. Some professors note lingering skepticism inside the university community, with veteran faculty concerned that entrepreneurship weakens academic focus. Others point out that while professors are strong in research, many lack clinical expertise required for successful drug commercialization—making clinical-stage success a significant hurdle for university-born ventures."

https://www.mk.co.kr/news/it/view/2020/11/1138592/