Daewoong Pet expands into CRO biz to develop specialized drugs for pets

Daewoong Pet, the veterinary branch of Daewoong Pharmaceutical, said Monday that it plans to officially expand into the contract research organization (CRO) business for the development of new pet-specific drugs.

The company said this strategic decision comes in response to the rapid growth of the pet market and the increasing demand for specialized veterinary pharmaceuticals.

According to the Korea Pet Report issued by KB Financial Group, the number of households with pets rose from approximately 5.59 million in 2017 to 6.3 million in 2023, marking a 12.7 percent increase. Along with this trend, pet owners are showing heightened interest in the prevention and treatment of animal diseases.

Despite this growing demand, there is a shortage of approved veterinary-specific drugs in the market, with over 70 percent of medications used in animal hospitals being substituted with human drugs. However, using human medications for pets—such as crushing pills to administer them—can lead to the loss of the drug's original properties, potential mixing with other substances, and the risk of pets rejecting the bitter taste of the crushed form.

“The need for dedicated veterinary pharmaceuticals is becoming increasingly urgent, and CROs specializing in animal drug research and development play a critical role in addressing this gap,” said a Daewoong Pet official. Through its CRO business, the company aims to support the entire clinical trial process, including consulting for drug approvals and trial design, positioning itself as a leader in the development of pet-specific medications.

Daewoong Pet is collaborating with domestic and international R&D partners to drive innovation in pet pharmaceuticals, utilizing veterinary expertise, research nurses, and other specialists to ensure high-quality clinical trial services, a company official said.

The company added that it has assembled a highly skilled team with advanced expertise in clinical trials, positioning the company to provide high-quality services in veterinary drug development. It has also implemented a clinical trial acceleration strategy aimed at reducing both the cost and duration of trials. This protocol is designed to enhance efficiency throughout the clinical trial process and expedite the development of new drugs.

In March 2023, Daewoong Pet received certification as an animal clinical trial site and is set to obtain approval for clinical trials of veterinary medical devices later this year. The company aims to strengthen its market competitiveness by offering consulting and clinical trial services for the approval of these devices.

Additionally, Daewoong Pet is developing an electronic case report form (e-CRF) system to streamline clinical trial processes. “This system, along with other innovations, aligns with global guidelines and will help the company refine its trial design and management practices,” said a company official.

“As a leading CRO in veterinary pharmaceuticals, Daewoong Pet has the distinction of securing Korea’s first marketing authorization for pet medication and conducting numerous clinical trials,” CEO Moon Jae-bong of Daewoong Pet added. “With our unique experience and expertise, we aim to be a valuable partner to companies facing challenges in developing pet-specific drugs.”