Australian CRO expands into Asia with new hub launched in Korea

“The clinical trials market in Asia is destined for significant growth.” 

Jessica Han, who was appointed as Director of Asia Operations at Avance Clinical, an Australian contract research organization (CRO), in July, said that Asia is rapidly emerging as a powerhouse in the global clinical trials market.

This surge is driven by rising healthcare demands, particularly the increase in chronic diseases linked to dietary and lifestyle changes, along with the ongoing impact of the Covid-19 pandemic. These factors have underscored the importance of emerging markets and prompted government support in multiple countries.

The Asia-Pacific (APAC) clinical trials market, valued at $15.9 billion last year, commands nearly 20 percent of the global market revenue. Industry forecasts predict a 7.3 percent compound annual growth rate (CAGR) from 2024 to 2030.

As biotech companies explore new avenues for drug development, Han said the APAC region is emerging as their go-to destination.

Among the countries in Asia, Han—who previously oversaw clinical operations related to trials in Korea at Novotech, another Australian CRO, before transitioning to a regional leadership role at Avance Clinical—said that Korea occupies a “particularly important position” due to its advanced scientific research capabilities and robust biotech sector.

Avance Clinical, recognizing Korea’s potential, has established its Asian hub at World Trade Center (WTC) near COEX, southern Seoul. The new office, announced in May and operational since Han's appointment in July, is expected to be fully settled in its business operations by the end of August. This marks a significant expansion from the company’s traditional focus on Australian and U.S. trials.

“Korea’s position in the global clinical trials landscape is undeniable,” Han said  in an interview with Korea Biomedical Review last Friday. 

With a significant number of clinical trials already underway, Korea ranks as the 11th largest pharmaceutical market worldwide, according to government data. Also, the nation is among the top 10 countries for conducting clinical trials.

Seoul, in particular, leads globally in the number of trials conducted per city.

Han lauded Korea not only for the quality of its trials but also for its “ease of doing business.” The country's universal National Health Insurance (NHI) system, covering over 97 percent of the population, offers researchers a reliable patient base and substantial cost savings. "The business-friendly environment here is a significant advantage."

For Avance Clinical, the expansion is more than strategic. “We’re transitioning into a partnership model with our clients,” Han said. The company's clientele ranges from early-stage startups to mature biotech firms, many of whom are  entering the Asian market for the first time. "A partnership approach is crucial as more companies, both multinational and domestic, aim to establish a global footprint." 

Patients are at the heart of clinical trials, making partnerships with top Korean hospitals and clinical trial centers another priority. “Biotech companies want their trials conducted by the right researchers and delivered to the right patients,” Han said. “Our scientific and regulatory experts provide the necessary guidance to help clients successfully navigate Asia’s diverse and complex market.”

According to Han, the Korean government’s understanding of the biotech sector and the Ministry of Food and Drug Safety's (MFDS) regulatory streamlining have also been crucial in facilitating smooth trial processes. “In the end,” she said, “our goal is to guide biotech companies toward FDA submissions or late-stage clinical trials. Building a close, cooperative relationship with regulatory agencies will be essential."

In contrast to larger global CROs, which often adhere to rigid protocols, Han said Avance Clinical offers a more “agile, cost-sensitive approach” tailored to biotech companies’ specific needs. While large CROs may have complex communication channels, Han said that Avance Clinical’s direct and streamlined communication with key stakeholders allows for quick issue resolution. "We prioritize the alignment between Avance Clinical and our clients, ensuring that our efforts are perfectly synchronized and moving in the same direction," Han said.

Avance Clinical is setting its sights on local trends to guide its clinical trial focus, with oncology currently at the forefront. Last year, oncology dominated the APAC market, capturing 36.4 percent of the revenue in Korea. 

Avance Clinical will lead with cancer-related clinical trials and push into emerging areas like  diabetes and obesity, which Han anticipates will become significant trends.

As Korea’s lifestyle changes and aging population contribute to a rise in autoimmune diseases such as Alzheimer's, Avance Clinical is also ready to capitalize on its expertise in central nervous system (CNS) trials. 

But Korea is just the beginning. Avance Clinical plans on gradually expanding into other promising Asian markets, considering “small, yet high-quality” regions such as Taiwan and several other Southeast Asian countries that Han chose not to name. 

"These markets align with Avance Clinical’s strategy of establishing itself as a trusted partner while fostering the growth of biotech companies, ensuring long-term, fruitful business relationships," Han said. 

During a recent visit to Taiwan, Han observed growing interest among Asian clients in conducting trials in Korea. “Forging new partnerships with these clients is a crucial element of our long-term strategy,” she said.