K-Biopharmaceutical Exports Hit $6.6B, a 'Record High'; U.S. Down, Europe Up

Exports in the first three quarters up 11.8% year over year
$1.07 billion to the United States... remains top destination
Growth accelerates in European markets

South Korea's biopharmaceutical exports reached a record $6.6 billion in the first three quarters of this year. Although exports to the United States fell by more than 20%, a sharp increase in contract development and manufacturing organization (CDMO) supplies to the European market and in demand for biosimilars drove overall export growth.

On October 8, the Ministry of Food and Drug Safety said South Korea's biopharmaceutical exports totaled a provisional $6.6 billion in the first three quarters of this year, up 15.8% from the same period a year earlier. This accounted for 73.4% of total pharmaceutical exports of $9 billion over the same period.

Exports continued to grow quarter by quarter. Exports reached $1.99 billion in the first quarter, up 11.8% from a year earlier, and rose 20.9% to $2.54 billion in the second quarter. In the third quarter, they increased 15.6% to $2.07 billion. However, September exports totaled just $670 million, down 14.1% year over year, partly due to fewer working days.

The United States remained the largest export market, with exports totaling $1.07 billion. However, exports to the country fell 23.7% from a year earlier, and its share of total exports declined from 24.7% to 16.3%. The decrease appears to have been driven largely by a $400 million drop in exports of genetically engineered pharmaceuticals and other products.

By contrast, the European market posted notable growth. Exports to Switzerland rose 27.3% to $1.01 billion, while those to Hungary increased 28.0% to $920 million. The Netherlands ($630 million, up 42.4%), Italy ($300 million, up 59.6%), Belgium ($290 million, up 209.7%), and France ($200 million, up 269.1%) also recorded sharp increases. European countries accounted for seven of the top 10 export destinations.

The Ministry of Food and Drug Safety said it believes export growth was driven by expanded CDMO supplies to global pharmaceutical companies in the European market and increased demand for biosimilars.

By product type, exports of genetically engineered pharmaceuticals totaled $5.71 billion, accounting for 86.5% of biopharmaceutical exports. This represented a 16.8% increase from the same period a year earlier. Exports of toxins and antitoxins also rose 43.3% to $430 million. By contrast, vaccine exports fell 21.7% to $180 million.

The Ministry of Food and Drug Safety plans to improve approval and review procedures and expand regulatory support to help South Korean biopharmaceuticals enter overseas markets. In particular, under the Special Act on Regulatory Support for Contract Development and Manufacturing Organizations for Biopharmaceuticals, which takes effect in December, it plans to pursue measures such as certification of raw materials to strengthen the global competitiveness of South Korean companies.

This content was produced with the assistance of AI translation services.