LG Life Sciences Ltd., currently LG Chem Ltd., is often referred to as the “bio academy” in South Korea. Its research lab was the largest in Asia during the 1980s and many of its top PhD researchers went on to form startups, significantly contributing to the growth of the country’s pharmaceutical and biotech industries.

More than 30 bio-venture founders and about 170 university professors trace their roots back to LG Life Sciences. LG alumni are embedded throughout the Korean biotech ecosystem, from discovering promising drug candidates to conducting clinical trials and commercialization.

The recent influx of offers from global pharmaceutical giants to the country’s bio-industry is a testament to the influence of these LG alumni. Key figures such as Park Soon-jae of Alteogen Inc., Kim Yong-zu of LigaChem Biosciences Inc., and Lee Sung-joo of Orum Therapeutics Inc., all former LG employees, have played pivotal roles in securing multi-trillion-won technology transfer deals.

Over 20 biotech startups founded by LG alumni, such as Onconic Therapeutics and Genosco, are preparing for initial public offerings.

According to multiple sources from the pharmaceutical industry on Sunday, the combined market capitalization of 12 Kosdaq-listed bio-ventures established by former LG Life Sciences researchers topped 21 trillion won ($15 billion), a tenfold increase from 2 trillion won in 2018.

Over the past six years, these companies have secured technology export contracts worth at least 15 trillion won from global pharmaceutical companies.

“Seeing senior colleagues succeed in launching ventures inspired many juniors to follow suit, leading to the proliferation of bio-ventures,” Bridge Biotherapeutics Inc. founder Lee Jung-kue said.

More importantly, these companies are driving a paradigm shift in the Korean biotech industry by redefining the formula for success.

Instead of solely relying on individual drug clinical trials, they are adopting platform business models that add new value to existing drugs. This approach has gained significant traction, with multinational pharmaceutical companies competing to acquire Korean biotech platform technologies.

“Most bio-ventures relied on one or two drug candidates in the past, heavily promoting their clinical success potential while resorting to equity financing and convertible bonds,” an industry insider said. “If trials failed, they would tweak their approach to restart the process, creating a vicious cycle.” This is changing as companies with single platforms capable of managing dozens of trials emerge.

Platform-based companies can develop diverse drug candidates even if some trials fail, making them more stable and versatile than firms focused solely on drug development.

Platforms that enhance drug efficacy by modifying injection formulations, for example, target specific cancers using antibody-drug conjugates, or extend the duration of drug efficacy are highly valued by global pharmaceutical companies.

Park, who founded Alteogen in 2008 after 18 years at LG Life Sciences, built Kosdaq’s top-ranked company in market capitalization. He commercialized 11 biotech products during his tenure at LG, achieved WHO approval for an HBV vaccine, and secured FDA approval for a human growth hormone. He also developed a vast network through global partnerships and licensing deals.

Kim, who founded LigaChem Biosciences in 2006, developed Factive, a global antibiotic, during his time at LG. LigaChem Bio’s ADC platform, ConjuALL, embodies Kim’s decades of expertise in drug development.

Peptron Chief Executive Officer Choi Ho-il is a first-generation bio-venture entrepreneur, who started his company in 1997 after working at LG’s Biotech Research Institute. His experience synthesizing peptides for AIDS treatments at LG laid the foundation for Peptron’s Smart Depot platform.

Lee, who founded Orum Therapeutics in 2016, previously worked as a drug development researcher at LG. Orum has secured 1.5 trillion won in technology transfer deals over the past two years with Bristol Myers Squibb and Vertex Pharmaceuticals.

Genosco, led by former LG Life Sciences research director Koh Jong-sung, is the original developer of Leclaza, the first Korean anti-cancer drug approved by the FDA. Koh is still the only Korean scientist to have commercialized two new drugs - LG Chem’s diabetes drug, Zemiglo, and Yuhan Corporation’s anti-cancer drug, Leclaza.

Other notable bio-ventures founded by LG alumni include Protium Science, Genuonesciences, PimedBio, MetaCen Therapeutics, Altos Biologics, Standigm, and CoBX Bio.

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