Competition in Korea’s medical cannabis market heats up
The South Korean government is actively considering the cultivation and import of cannabis-based drugs in the near future. As such, bio-companies in Korea are taking proactive steps to dominate the related market. Currently, the use of cannabis-based drugs in Korea is strictly limited to official and academic purposes under the Narcotics Control Act. Additionally, only patients with rare and incurable diseases are able to access these medicines through the Korea Orphan & Essential Drug Center (KODC). However, in line with the “100 Food and Drug Regulatory Innovation Tasks” announced by the Ministry of Food and Drug Safety on August 11, the ministry plans to authorize the production and import of cannabis-based drugs by 2024, in order to ensure the right to treatment for rare and incurable diseases.
Furthermore, the ministry intends to broaden the use of overseas clinical trial drugs containing cannabis and allow individuals to carry cannabis-based medicines for self-treatment when entering or exiting the country. As the government moves towards more lenient regulations, companies have already announced their intentions to develop cannabis-related drugs. Most recently, Yuhan Care and Inventage Lab revealed their plans to develop and commercialize a long-acting injectable drug using a promising medical cannabis treatment candidate. This collaboration will see Inventage Lab utilizing its IVL-DrugFluidic platform technology for the development and manufacturing of Yuhan Care’s medical cannabis candidate, YC-2104. However, no specifics have been disclosed as to which treatment area the two companies will focus on.
Wooree Bio, meanwhile, is currently working on medical cannabis cultivation at its smart farm in Ansan, Gyeonggi Province. The company is striving to reduce cultivation costs and increase the cannabidiol (CBD) content by implementing a specialized lighting system that enhances hemp production. In addition, Wooree Bio aims to develop technology for extracting and refining high-purity hemp-based pharmaceutical ingredients by 2024. Hwail Pharmaceutical is also rapidly advancing in the medical marijuana sector. Last April, the company acquired a 49.15% stake in Cannabis Medical, which holds patents for the use of medical cannabis in treating degenerative brain diseases. Hwail has also made an equity investment in CTC Bio, a company that successfully developed a film-type formulation for medical cannabis.
HLB Life Sciences signed a business agreement in April with Neocann Bio to jointly develop medical marijuana-based drugs. Leveraging its patented microwave processing technology, the company will extract and process high-purity hemp components in order to develop treatments for cancer, epilepsy, and dementia. Medicox recently announced their investment in Green Farmers, an Australian company specialized in cannabis cultivation. This follows their exclusive contract with Green Farmers in June to import raw hemp materials and expand their medical cannabis business infrastructure. Despite these developments, analysts note that companies may face difficulties in aggressively investing in the medical cannabis market due to the uncertainty surrounding the timing and extent of legalization. An industry insider stated, “In other countries, CBD substances are widely used in various fields such as pharmaceuticals, cosmetics, and health functional foods. However, the government has yet to release specific plans for deregulation.” Should the government provide clear guidelines in the near future, companies will be able to move forward with greater speed and efficiency.
