[BioTimes] CARM Calls for Greater Investment in Biotech Companies at Open Innovation Investment Conference

Representatives from participating companies, investment firms, and related organizations at the 2nd CARM Open Innovation Investment Conference

Event Held to Promote the Advanced Regenerative Bio Industry and Support Investment in Promising Companies
Co-hosted by the Korea Regenerative Medicine Fund
Supported by the Korea Venture Capital Association, Korea Investment Partners, and Daily Partners
IR Presentations by 16 Regenerative Medicine Companies with Q&A and Advisory Sessions Involving Approximately 55 Investment Firms

[BioTimes] The 2nd CARM Open Innovation Investment Conference, jointly hosted by the Council for Advanced Regenerative Medicine (CARM) and the Korea Regenerative Medicine Fund (KFRM), was held on the 21st at Hall E on the third floor of COEX in Samseong-dong, Gangnam-gu, Seoul.

Now in its second year, the event was organized to help revive investment sentiment at a time when funding for biotech companies has become increasingly constrained.

Designed to promote Korea’s advanced regenerative biotechnology industry and support promising companies in attracting investment, the conference was supported by the Korea Venture Capital Association, Korea Investment Partners, and Daily Partners.

Attendees included Kang Kyung-sun, Chairman of CARM; Eun Seong-ho, Director General for Advanced Medical Support at the Ministry of Health and Welfare; Cho In-ho, Head of the Korea Regenerative Medicine Fund; Noh Yeon-hong, Chairman of the Korea Pharmaceutical and Bio-Pharma Manufacturers Association; Hwang Man-soon, CEO of Korea Investment Partners; and Yoon Keon-soo, Chairman of the Korea Venture Capital Association.

In his welcoming remarks, Chairman Kang said, “At a time when investment conditions remain difficult both domestically and globally, I hope this event will generate meaningful discussion around investment in pharmaceutical and biotech companies.”

He added, “Interest in health and longevity is increasing, particularly among the baby boomer generation, and related industries are expected to grow rapidly. The pharmaceutical and biotech sectors are therefore bound to become core industries of the future. If investors take greater interest in pharmaceuticals, biotechnology, and advanced regenerative medicine, I am confident that companies will be able to respond by delivering tangible products and results.”

In his congratulatory remarks, Hwang Man-soon, CEO of Korea Investment Partners, said that one reason investment in unlisted and early-stage biotech companies has yet to recover is the weak performance of publicly listed biotech companies.

He suggested that growth industries such as biotechnology could benefit from restrictions on short selling and noted that many biotech companies had gone public through technology-based listing programs. He also expressed appreciation for efforts by the Korea Exchange to make listings more accessible for biotech companies, adding that industry participants should work together with a stronger sense of solidarity to overcome the difficult investment environment.

The conference began with a keynote presentation by Yoon Keon-soo, Chairman of the Korea Venture Capital Association, who discussed how investor perspectives are changing along with the biotech market.

Yoon said Korea’s biotech market appeared to be growing rapidly in 2020, when 17 biotech companies were listed through special technology-based IPO programs. However, by the first half of 2023, market conditions had deteriorated to the point where new investment had largely disappeared and activity was concentrated on follow-on financing.

He added that available investment capital remained limited and said that stronger share prices among listed biotech companies, along with improved technological competitiveness among biotech ventures, would be necessary for the market to recover.

Yoon also emphasized that the current difficulties facing biotech companies could create opportunities for a new phase of growth.

“The fact that 15 of the top 50 companies by market capitalization on KOSDAQ are biotech companies is a significant achievement,” he said. “We need to communicate these successes more effectively so that more investment and listings can take place. Drug development is slow, but it is continuing to make progress.”

He advised biotech companies to use the current period to strengthen their fundamentals, noting that the market is expected to expand further as society ages.

Yoon further explained that investors once tended to favor companies with a broad range of pipelines, whereas they now increasingly prefer companies that identify a smaller number of high-impact programs and focus their resources on them.

He stressed that global competitiveness is essential and encouraged companies to actively embrace emerging technologies such as AI, rather than remaining tied to conventional approaches.

Following the keynote presentation, 16 regenerative medicine companies participated in IR presentations, followed by Q&A and advisory sessions with approximately 55 domestic investment firms.

After the IR sessions, one-on-one meetings between investors and CARM member companies were also held.

The 16 companies participating in the IR presentations and one-on-one consultation sessions were NeurolMed, Maru Therapeutics, MarkHelz, B-Element, StemExOne, Acrocell Bioscience, Xcell Therapeutics, Youth Bio Global, InstemCare, ILIAS Biologics, GeneMedicine, CLIPS BnC, PAIAN Biotechnology, Pentamedix, Primoris Therapeutics, and HaplScience.

CARM said, “We hope this event will help revive weakened investment sentiment in the pharmaceutical and biotechnology sectors through collaboration with related organizations and investment firms, while providing small and venture companies with an opportunity to advance to the next stage of growth.”

Founded in 2016, the Council for Advanced Regenerative Medicine (CARM) is an industry-led organization established to promote Korea’s regenerative medicine sector and strengthen the country’s position in the global regenerative medicine market.

The association has worked to secure government funding, improve regulations, and promote investment in companies operating in the advanced regenerative medicine sector. In particular, CARM supported efforts leading to the introduction and passage of Korea’s Advanced Regenerative Bio Act in 2018.

The organization has also contributed to building Korea’s regenerative medicine ecosystem, including efforts related to the approval of a KRW 600 billion preliminary feasibility study in 2020 for advanced regenerative medicine research and industry development and the launch of a national regenerative medicine R&D initiative in 2021.

CARM operates several committees, including the External Cooperation Committee, Policy Committee, and Corporate Exchange Committee.

The Corporate Exchange Committee, which organized the conference and is chaired by Lee Eui-il, CEO of Xcell Therapeutics, focuses on identifying ways to support ventures and startups in the regenerative medicine sector. It also aims to contribute to the creation of an integrated and sustainable industry ecosystem by expanding collaboration among companies and related sectors.

BioTimes / Reporter Kim Soo-jin
sjkimcap@biotimes.co.kr