SK Biopharm opens its US direct-sales infrastructure to outside partners; signs $2.57 billion generative AI drug discovery deal with Insilico Medicine; aims to cut preclinical timelines from 4.5 years to 2
"We spent nearly 30 years on independent development and commercialization, and built a 100-percent direct-sales operation in the United States that captured the No. 1 market share. Now, instead of keeping that experience to ourselves, we will launch an 'East-West Bridge' growth platform — bringing outstanding technology from Korea and Asia to the US and turning it into commercial success."
SK Biopharm President Lee Dong-hoon laid out open innovation and artificial intelligence as the two pillars of the company's medium-to-long-term business transformation over the next five to ten years. He spoke at a press briefing on the sidelines of the 2026 BIO International Convention (BIO USA) in San Diego on Sunday (local time). The declaration signals a break from the high-cost, slow-moving constraints of traditional in-house R&D in favor of a broader, more collaborative model.
Lee pointed to the $2.57 billion joint-research agreement with AI-native drug discovery company Insilico Medicine — disclosed the previous day — as a concrete example. "The AI joint venture we set up last year with Brazil's Eurofarma, centered on EEG-based measurement, was an attempt focused on prevention and diagnosis," he said. "This new deal marks a full-scale expansion into the drug discovery space."
"Insilico is the first AI-native company to achieve human proof-of-concept, and it is a strong fit for us," Lee said. "It is also a strategic combination that can generate synergies with group affiliates driving AI innovation, including SK Hynix."
Hwang Seon-gwan, SK Biopharm's chief technology officer and head of drug research, attended the briefing and outlined the specific collaboration framework and pipeline expansion plans with Insilico. "This is not a conventional technology-licensing deal where we simply commission research or buy assets," Hwang said. "It is a joint research arrangement in the form of an 'Extended R&D Lab' that organically integrates our pharmaceutical expertise with Insilico's AI platform." He added that the company plans to fully internalize its own capabilities by accumulating data generated through the collaboration — including molecular design outputs, AI predictions and experimental validation results.
Through the partnership, SK Biopharm formally announced its entry into neuroimmunology as a new therapeutic target area within its core central nervous system franchise, where unmet medical need remains high. "We are expanding beyond our existing epilepsy focus — which centers on balancing excitation and inhibition — into neuroimmunology, and we are simultaneously advancing three targets that allow for multi-indication expansion," Hwang said. He drew a parallel with Lyrica, which grew from epilepsy into neuropathic pain and anxiety disorders to become an 8 trillion won blockbuster, saying SK Biopharm aims to replicate that "mega-burst" model across its own diversified pipeline.
Specific figures on R&D efficiency gains from AI were also disclosed. "On industry average, identifying a candidate compound and advancing it to the preclinical stage typically takes 4.5 years and enormous cost," Hwang said. "Applying Insilico's Pharma.AI platform can cut that timeline to two years — a reduction of more than 50 percent." He said gaining an additional two years of exclusive sales in global markets translates into substantial commercial advantages in terms of both revenue and market positioning.
SK Biopharm also highlighted its global incubation hub LYNX, established inside its New Jersey office in partnership with KOTRA and the Korea Health Industry Development Institute, and doubled down on its role as a bridge for public-private collaboration. "As the scale of the Korea Pavilion at BIO USA demonstrates, domestic public institutions, universities and venture companies have impressive capabilities — but the intra-links needed to connect them are lacking," Lee said. "We will spend the next five to ten years building a mutually beneficial model that sources promising early-stage compounds from Asia and channels them through our US direct-sales infrastructure to commercial success, cementing SK Biopharm's leadership in the global biotech industry."
silverpaper@heraldcorp.com
