Experts discuss business development for life science startups at JLABS Korea event < Special < Article

In the life sciences industry, business development is a nuanced process with distinct challenges, particularly for small companies navigating partnerships with larger firms.  “It’s rarely a one-meeting process,” said Lauren Lee, executive vice president of Yuhan Corp., a Korean pharma giant.  “Understanding the company’s goals and aligning with the partner takes time.”

Lee spoke during an event hosted by JLABS Korea, the accelerator platform operated by Johnson & Johnson Innovation to support Korean pharmaceutical, biotech, and medical device companies entering global markets. The session, titled “Business Development for Startup Companies,” aimed to explore the complexities of launching and growing startups in the pharmaceutical and biotech sectors.

At its core, business development is about creating long-term value, and for smaller ventures, the key is often understanding the science deeply enough to address the needs of potential partners. “You must know about the key data that can solve the partner’s problem,” Lee said. This means not only explaining the science but guiding the partner through how it meets the market’s needs.

Yuhan adopts a strategic approach when evaluating potential partnerships. “Our first question is always: What unmet need does this drug development program address,” Lee said, highlighting the importance of understanding a therapy’s mode of action, especially in competitive fields like oncology, where combination therapies and evolving guidelines dominate.

Collaboration, however, doesn’t end with a handshake. Co-development and shared innovation are essential as regulatory bodies increasingly look for novel approaches in clinical trial design.  Yuhan’s goal, according to Lee, is to ensure that by phase 3 or pivotal studies, its programs demonstrate clear benefits over existing treatments. “We thoroughly evaluate every compound, recognizing that none are perfect,” Lee said. “We’re always open to refining ideas to bring real innovations to patients.”

According to Lesley Stolz, regional vice president at Johnson & Johnson Innovation, relationships are critical for drug development. “Before engaging potential partners, you must understand your product’s place in the global landscape,” Stolz said. Scouting for the right technologies is another essential aspect, with both sides needing to find partners whose goals align.

For Brandon Suh, CEO of Lunit, an AI-driven medical technology company, the journey began in 2013 when AI was still emerging in healthcare. With the surge of medical data, the need for AI solutions became clear. Lunit’s first focus was radiology—starting with chest X-rays, the most frequently performed imaging test worldwide.

Lunit then scouted for partners like GE Healthcare and Philips to integrate their AI software into existing hardware, enhancing efficiency in interpreting medical images. “It’s important to do your research,” Stolz said. “If your product doesn’t align with a company’s focus, it’s not worth pursuing. Targeting the right partner increases your chances of success.”

With eyes on the future, Lunit is advancing its focus on data integration, moving beyond pathology to explore broader applications and unlock new potential. “Our initial approach was more accessible,” Suh said. “But we also considered higher-risk, higher-reward projects, such as developing solutions beyond human capabilities, particularly in prediction.” 

This strategic pivot has led Lunit to delve into oncology, leveraging a wealth of new data. “Analyzing combined data—imaging, clinical, and sequencing—adds another layer of complexity, which is where we see significant future value,” Suh said.

Effective communication is at the core of business development, and nowhere is this clearer than in negotiation. “90 percent of the work is done before you even start talking,” said Stolz, emphasizing the importance of preparation. Successful deals rely on asking the right questions early, then moving into an exchange of information, bargaining, and finally reaching a commitment. “Information-based bargaining is key,” Stolz explained. “It’s not just about monetary demands but the reasoning behind them. You need to send the right information from the outset to gain traction.”

Lee agreed, emphasizing the need to “identify the data that will resonate with your partner, maintain ongoing dialogue, and have several conversations over time.” According to Lee, this approach allows companies to “refine their story and gather insights along the way.”

For smoother discussions, Stolz recommended both sides present data to support their valuation claims. “Open dialogue about the reasoning behind payment expectations helps each side better understand the other,” she said. Progressing through a deal demands careful attention to detail, especially as discussions evolve. “Expect significant conversations,” she added. “It’s not just about sealing a deal; it’s about considering multiple aspects throughout the process.”

For example, a central challenge in today’s healthcare market is identifying who will pay for new products. As costs continue to rise, securing approval and reimbursement has become more difficult. Regulatory bodies are now focused on transformational science instead of incremental improvements, making market access planning essential from the outset. Companies must consider not only how to develop their products but also who will finance them and the approval process involved.

Post-Covid, major shifts in the biotech sectors of Korea, China, and the U.S. have added pressure, particularly for small companies. Running clinical trials and providing solid performance data have become more challenging. “We’re seeing big changes in global oncology,” said Lee Sang-hoon, CEO of ABL Bio. “Five years ago, smaller phase 1 trials sufficed. Now, instead of data from 40 patients, we need results from 100. This requires a whole new approach.”

In such a competitive landscape, differentiation is everything. Stolz stressed that companies must either stand apart or convincingly argue why their approach is superior. Lee of ABL Bio pointed to his company’s focus on bispecific antibodies, where ABL Bio is zeroing in on immunoglobulin receptors, differentiating them from others targeting translating receptors. “With several phase 1 trials underway, we are gaining attention for the promising safety and efficacy data, and big pharma is increasingly interested in collaboration,” he said.

One standout example is ABL Bio’s recent partnership with Sanofi. Under an exclusive collaboration and licensing agreement, the companies are co-developing ABL301, a bispecific antibody targeting alpha-synuclein and IGF1R to treat Parkinson’s disease. The deal secured ABL Bio $75 million upfront, with up to $985 million tied to milestone payments, including $45 million in near-term goals. 

Building relationships is another critical factor, Stolz noted, as people prefer doing business with those they like and trust, making rapport essential.  “Trust is the foundation of any successful relationship,” added Christian Rodseth, area managing director of Johnson & Johnson Innovative Medicine North Asia. He emphasized that trust is essential for “extending collaboration from the lab to the final mile,” as it creates a solid framework for effective communication and cooperation throughout the entire process.