Electroceutical,
a medical device that aims to achieve therapeutic effects by directly
stimulating electric current to the human body, is emerging as a new growth
engine for Korean biopharmaceutical companies.
Korean
pharmaceutical companies are paying more and more attention to
electroceuticals.
In
Korea, electroceuticals are classified as medical devices and are subject to
approval under the general medical device guidelines.
However,
they are differentiated from conventional medical devices in that they are not
limited to alleviating diseases but are aimed at treating diseases like
conventional medicines.
They
are also different from dietary supplements in that their therapeutic effects
are verified through clinical trials, approved, and provided to patients with a
doctor's prescription.
The
pharmaceutical industry is investing heavily in the field of electroceuticals
because they are gaining attention as an alternative to replace or complement
existing chemical drugs. According to industry watchers, electroceuticals have
relatively fewer side effects because they are limited to a specific site or
target organ.
They
can also be combined with pharmaceutical drugs to increase the effectiveness of
treatment.
Moreover,
traditional pharmaceutical companies are also showing interest as e-drugs have
the potential to create new markets. According to global market research firm
IDTechEx, the electroceutical market is growing at more than 10 percent
annually and is expected to reach $60 billion (about 72 trillion won) by 2029.
As
a result, either collaboration with or investment in startups specializing in
electroceuticals has been increasing.
Dong-A
Pharmaceutical signed an exclusive distribution agreement with electronic drug
research and development company Nu Eyne for a migraine relief medical device
in Korea last Tuesday.
The
migraine relief medical device is a wearable device that is attached to the
forehead and has two functions -- acute mode to relieve pain and preventive
mode to reduce the frequency of attacks.
By
applying microcurrent stimulation to the trigeminal nerve located around the
forehead, it produces neuromodulation to relieve migraines or reduce their
frequency.
With
the signing of this supply agreement, Dong-A Pharmaceutical will be the only
company in Korea to exclusively sell Nu Eyne's migraine relief medical devices
that have received U.S. Food and Drug Administration's 510K and EU's CE-MDD
certification.
Nu
Eyne will be in charge of production and product after-sales service for the
medical device.
The
two companies previously signed a mutual business agreement in November last
year for clinical research and business development of technologies to treat
chronic diseases such as migraine, dry eye, and sleep improvement.
The
signing of this agreement is expected to further strengthen the collaboration
between the two companies.
SK
Biopharmaceuticals and SK agreed to jointly participate in a Series D
investment in Cala Health, a U.S. company specializing in electroceuticals.
Cala
is a Silicon Valley-based electronic medicine company that has developed an
electronic medicine that can be worn like a wristwatch to treat Parkinson's
disease and was approved by the U.S. Food and Drug Administration (FDA) in
2019.
The
investment is expected to be highly synergistic with SK Biopharmaceuticals'
ongoing digital healthcare business.
Since
2018, SK Biopharmaceuticals has been researching and developing algorithms and
devices for detecting and predicting epileptic seizures.
Chong
Kun Dang also signed a domestic co-promotion agreement with YBrain, a mental
health e-drug platform company, in February, for its depression electroceutical
MINDD STIM, which is the world's first prescription electroceutical with a monotherapy
indication for depression.
The
device uses electrical stimulation to relieve and treat mild to moderate
depressive symptoms. It helps to normalize the function of the frontal lobe by
applying minute electrical stimulation.
It
received a medical device item license from the Ministry of Food and Drug
Safety in April 2021.
Under
the agreement, Chong Kun Dang will exclusively distribute MINDD STIM to
psychiatrists in Korea and will conduct various marketing activities, such as
academic activities and product education, to ensure smooth sales of the
product.
YBrain
will be in charge of product installation, consumer response such as customer
inquiries and claims, and after-sales service such as defect repair.
Hanmi
Pharm and KT, one of Korea's top three telecom companies, said that they have
jointly invested in digital therapeutics and electroceutical developer Digital
Pharm, a subsidiary of the Catholic University of Korea's holdings company, in
June of last year.
The
three companies will commercialize digital treatment devices for addiction
symptoms such as alcohol and nicotine and electroceuticals for attention
deficit hyperactivity disorder (ADHD).
