Merck to build biotech center in Songdo

Pharmaceutical giant to partner with Samsung

By Kim Yoo-chul

PYEONGTAEK — Merck, one of the world’s major science and technology companies, said Monday that it plans to build a biotech center in Korea.

“The location of the Biotech Training Center will be Songdo. The center will be operational in the fourth quarter of this year, most likely in October at the earliest,” said Michael Grund, managing director of Merck’s Korean affiliate.

He made the remarks during an interview with The Korea Times at its newly-built technology center in the city.

Grund said the plan is in line with the group’s strategy to help the bio technology industry gain additional momentum.

“The training center is designed to train the scientific researchers and technicians of our customers. Life science is a new area many companies are getting into,” the executive said. “It’s a big investment.”

Merck will run the Biotech Training Center as if it is an “Apple Store,” where customers can have opportunities to experience and train on equipment.

“It’s not for research and development (R&D) but we are supporting R&D.”

Asked if the company plans to partner with Samsung Biologics or Samsung Bioepis, the bio affiliates of Samsung Group, the executive said there are “concrete plans” to strengthen strategic partnerships with them.

Grund lauded Seoul’s moves to invest more in biotech. “The Songdo area is a hot spot and many companies are moving there. Our training center is to prepare for this.”

He said the location is convenient for all entities operating in the city.

“It looks like the biotech industry is forming a cluster in Songdo. There are some customers that demand more than others and they really appreciate that we are closer to them.”

Grund said that his company is expanding its investment in Korea because the country is attractive in biotech-related fields.

“We are investing in Korea not because of economic incentives. If you look for a tax holiday or short-term investment, it will expire after a few years. Certainly, we appreciate strong support from local government but we’re not here only because of subsidies,” he said.

Grund said developing bio drugs and new biologic agents is time-consuming, adding that developing biosimilars is very complicated.

“The incentives for bio industries are many but some key criteria are whether the related industries in the region are competitive in manufacturing capability, specific technical training and in the production of biosimilars. I think Korea is quite promising,” Grund said.

He said Korea’s competitiveness in manufacturing will lift the country to be better positioned to go further in biotech pursuits.

“In pharmaceutical R&D, you can see output in 10 to 20 years, so it’s too early to evaluate. But manufacturing is different. You can build a plant in two to three years and manufacture biosimilars,” he said.

Asked about the possibilities that Korean companies will get involved in patent disputes with rivals from China, the United States and Europe, he said, “The biosimilar market is starting to mushroom. Korean companies are not late in biosimilars. You have new biological entities with protected patents.”

“There are 15 to 20 biologic products which will lose their patents next year. These will become biosimilars. So for the production of biosimilars, the timing is perfect. If the patents of many products are expiring, Korea is one of the most promising countries in the world to produce biosimilars,” he said.

He added that Korean biotech companies will eventually outperform their global rivals.