SK injects $200 mn into Roivant partnership for new drug development

SK Holdings Co., the holding company of South Korean conglomerate SK Group, has become the first Korean company to foray into the targeted protein degradation market thanks to a strategic partnership with a Switzerland-based biopharmaceutical firm.

SK Holdings announced on Dec. 7 that it will invest $200 million into Roivant Sciences to develop new drugs using Roivant's targeted protein degradation platform. 

Targeted protein degradation is a therapeutic approach that uses degraders to break down targeted protein, unlike conventional methods by which protein activities are blocked instead of destroyed.

"It is more effective than existing medicine and doesn't have resistance issues, which means better treatment of fatal illnesses once it is successfully commercialized," said an SK Holdings official.

Founded in 2014, Roivant Sciences is now in the spotlight for creating a business model that drastically reduces the development process for new drugs – a process that usually takes 10 years or more – backed by artificial intelligence and digital technology.

To date, Roivant has designed degraders for six unique target proteins. Its latest degrader is expected to enter clinical trials next year.

"We see targeted protein degradation as a promising area for novel drug discovery and we intend to build a leadership position in this field," said Vivek Ramaswamy, the chief executive and founder of Roivant Sciences.

Many global pharmaceuticals have begun exploring the targeted protein degradation field, referring it to as a game changer in developing new drugs.

First-generation movers in the field – US-based biotech firms Arvinas, C4 Therapeutics, Kymera Therapeutics and Nurix Therapeutics – were successfully listed on the Nasdaq in the US – with their combined market cap reaching almost $6.7 trillion.

These firms have also partnered with global pharma companies such as Pfizer, Bayer and GlaxoSmithKline for research.

SK Holdings aims to create a solid footing in the global targeted protein degradation market through its partnership with Roivant. Going forward, the Korean conglomerate's pharma arm SK Biopharmaceuticals Co. and Roivant will work together to boost their competitiveness in new drug development.

"The new targeted protein degradation platform will improve inefficiencies that arise in the drug development process," said Jang Dong-hyun, the chief executive of SK Holdings.

Once the platform is commercialized, SK Holdings hopes to strengthen its footing in the global market by working closely with its contract manufacturing organization arm SK Pharmteco, which has manufacturing facilities in the US, Europe and Korea.

Write to Kyung-min Kang at kkm1026@hankyung.com
Danbee Lee edited this article.