- KT and Hanmi Pharmaceutical to Jointly Invest in Digital Pharm, a Company Specializing in Digital Treatment Devices and Electronic Medicines
- Leading Korea’s national digital therapeutics (DTx) market through mutual cooperation with Korea’s leading pharmaceutical company-medical institution-ICT technology
- Accelerated development of DTx linked to alcohol and nicotine addiction and heart failure as well as ADHD home e-medication
SEOUL, South Korea, June 20, 2022 (GLOBE NEWSWIRE) — Digital platform company KT Corporation (CEO Koo Hyun-mo; www.kt.com) and Hanmi Pharmaceutical (CEO Woo Jong-su, Kwon Se-chang) , a pharmaceutical company specializing in the development of new R&D-driven drugs, have co-invested in Digital Pharm, a company specializing in DTx and electroceuticals. The companies announced on June 19, 2022 that KT and Hanmi have completed their investments in Digital Pharm and held a launch event.
This business alliance is the first instance in which Korea’s leading information and communication technology (ICT) companies, pharmaceutical companies and medical institutions have come together to leverage their respective capabilities. Digital Pharm, a subsidiary of Catholic University of Korea Technology Holding Company, was founded in November 2021 by Professor Kim Dai-jin of St. Mary’s Hospital, Seoul Catholic University.
Going forward, KT plans to develop a digital processing platform, establish business strategies for the new company, and build a pipeline of digital processing devices and electroceuticals. Hanmi will establish B2H (business to hospital) digital therapeutic strategies and sales and marketing strategies to activate the nascent digital therapeutic prescription market. KT and Hanmi plan to create additional value through strategic licensing.
Digital Pharm’s continued activity will be to discover new DTx pipelines in various disease areas and support clinical research infrastructure critical to commercial development. It is planned to start in the second half of the year a confirmatory clinical trial for a digital e-medication for the treatment of addictions targeting alcohol and nicotine, currently under development. In addition, Digital Pharm will focus on developing digital therapies for various diseases, such as hearing loss and dysphagia, and the platforms to use them remotely.
The outlook for the digital therapies market is promising. The global digital therapeutics market is growing at an average annual rate of 23% and is expected to reach US$17.3 billion (22.4 trillion Korean Won) by 2028. As the domestic digital therapeutics market is still in its infancy, Digital Pharm, a company specializing in digital therapeutics, is expected to play a leading role in the market.
KT is also conducting an exploratory clinical trial for a digital therapy to treat chronic heart failure and expects to see results within a year. Additionally, it plans to target the domestic market by securing a commercial license for NeuroSigma’s FDA-cleared digital therapeutic device targeting Attention Deficit Hyperactivity Disorder (ADHD) and potentially other disorders such as ‘epilepsy.
Previously, KT showed plans to expand its digital healthcare business by investing $5 million in NeuroSigma in December 2021. NeuroSigma is the developer of the Monarch eTNS (external trigeminal nerve stimulation) device, which received the US Food and Drug Administration (FDA) clearance. as an electroceutical for the field of pediatric ADHD. NeuroSigma is working to expand the use of the Monarch eTNS device beyond ADHD, to include other neuropsychiatric disorders such as depression and drug-resistant epilepsy. KT and NeuroSigma are cooperating to advance the development and commercialization of the next generation of eTNS products in Korea, and also plan to partner with Digital Pharm.
“I believe KT and Hanmi Pharmaceutical, Korea’s leading ICT and pharmaceutical companies, can synergize to lead the future digital health market,” said Song Jae-ho, Head of AI Convergence Business Division. /DX from KT. “KT will not only focus on building a leading digital therapeutics platform, but will also share its expertise in developing strategic plans and pipelines in the fields of digital therapeutics and electroceuticals. to enable Digital Pharm to successfully lead domestic and overseas markets.”
Checkmate Capital Group served as strategic advisor on the digital health partnership, licensing and strategic investments involving NeuroSigma. “We believe the Digital Pharm collaboration involving KT, Hanmi Pharmaceutical and Catholic University, Korea’s largest hospital, is a powerful and innovative combination of leaders in important fields. We expect their unprecedented collaboration to propel digital and electroceutical therapies at the front lines of critical CNS treatments.These treatments offer non-invasive, drug-free alternatives to high-risk surgeries and potentially harmful drugs,” said Jay Ryu, Managing Director of Checkmate Capital Group.
About KT Corporation (KRX: 030200; NYSE: KT)
KT Corporation, an international digital telecommunications company, re-established in 1981 under the Telecommunications Business Act, is leading the era of innovation in the world’s most connected country. The company is leading the fourth industrial revolution with high-speed wired/wireless networks and new ICT technologies. KT has selected Digital Health, AI, Big Data, Cloud and Robot as its next top businesses. This is another milestone in KT’s continued efforts to provide essential products and services as it aspires to become DIGICO KT. For more information about KT Corporation, please visit www.kt.com.
About Checkmate Capital
Checkmate Capital is an investment and strategic advisory group managing family office assets with a global business and financial network. Checkmate Capital’s main investment areas are biotechnology, agriculture and waste technology, and energy technology. Our team is able to provide seasoned expertise in our targeted industries, leveraging an international pool of strategic partners, business talent and resources. For more information, visit www.checkmatecapital.net.