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Ahn-Gook Pharmaceutical Disbands Bio-Research Division, Signaling Halt to New Drug Development

[비즈한국] It has been confirmed that Ahn-Gook Pharmaceutical001540 has suspended its research and development of new bio-drugs. With the dissolution of its biopharmaceutical R&D division, research into new drugs, including biologics, has come to a standstill, and the company is expected to focus solely on the development of generics and improved new drugs moving forward.

According to industry sources, all 12 members of the Ahn-Gook Pharmaceutical bio-laboratory resigned in early June after receiving recommendations for resignation from the company.

As recently as last year, Ahn-Gook Pharmaceutical had shown interest in areas such as obesity treatments, exploring the potential for new biopharmaceutical R&D. However, it is understood that since the departure of professional manager CEO Won Deok-kwon at the end of last year, the company’s commitment to biopharmaceutical development has weakened, ultimately leading to the disbandment of the bio-laboratory.

As the personnel capable of developing biopharmaceuticals within Ahn-Gook Pharmaceutical have vanished, the future of its current biopharmaceutical drug candidates has become uncertain. In July 2019, Ahn-Gook Pharmaceutical acquired the exclusive global development and commercialization rights for a candidate substance for age-related macular degeneration (AMD) from the bio-venture firm Repigen (now ProEn Therapeutics). However, it has been confirmed that there has been no progress in development, as the AMD treatment has remained in the preclinical stage for six years. It was also noted that the equity investment made in Repigen at the time of the AMD treatment acquisition was recovered in the second half of last year.

The company is also reported to have halted its open innovation strategy, which involved collaborating with other bio-firms for biopharmaceutical development. Previously, Ahn-Gook Pharmaceutical had signed joint research and development agreements for anti-cancer drugs with companies such as the radiopharmaceutical developer RayMed and the antibody drug developer A-Pint Bio, but with the dissolution of the bio-laboratory, only R&D personnel for generics and improved new drugs remain at the company.

“When I was at the company, we had discussions about how to develop the AMD treatment with our partner company,” said a former bio-laboratory team member, identified as ‘A’. “However, now that there is no one left to consult on this, it is questionable how it will proceed.” Another former team member, ‘B’, added, “When I resigned, I was told that the company would focus on generics and improved new drugs and discontinue bio-research. They said they would restart bio-research once revenue reached a certain level, but once you fall behind in the fast-paced bio market, it is difficult to catch up.”

Some suggest that the decision in July to lease out a portion of the laboratory space on the third floor of the new Gwacheon headquarters is not unrelated to the suspension of bio-research. Ahn-Gook Pharmaceutical decided to lease out a portion of its third-floor office space, including 220.4㎡ for animal housing and experimental labs and 112㎡ for an antibody discovery lab, for 64.9136 million won (excluding VAT) per month.

Regarding this, ‘B’ pointed out, “It seems like a hasty decision made without any consideration for how to handle the bio-laboratory assets. They probably thought it would be fine to lease out the unused equipment and space, but it won't be easy because there is no one left to restart the equipment that has been left in disarray since operations stopped.”

When asked about the dissolution of the bio-laboratory and the potential abandonment of new drug R&D, Ahn-Gook Pharmaceutical did not provide a response.