Microbiome-based new drug development

[Economist reporter Sun Mo-eun] Microbiome-based new drug development companies benefited from the revitalization of the bio-investment market after the novel coronavirus infection (COVID-19) pandemic. However, as time passed, the investment market froze, and the investment that was headed to these companies was almost stopped. Although many companies are struggling with financial difficulties, some are developing and launching products as a strategy to sell products directly to consumers for survival, and are paying off. HEM Pharma is a representative example. HEM Pharma has steadily expanded sales in partnership with Amway, a multinational multi-level marketing company. I met CEO Jiyosep at HEM Pharma's lab in Gwanggyo, Seongnam, Gyeonggi-do, and heard the story of successful differentiation.

Why do I have a stomachache…I found the answer in "Microbial"

The microbiome is a word that combines 'microbe' and 'ecosystem'. It refers to the microbial community of our body. Among the microbiomes, the intestinal microbiome is known to have various effects on health conditions. This means that if you control the microbiome, you can find a clue to relieve the health discomfort.

HEM Pharma focused on people suffering from abdominal pain after eating protein. When analyzing the microorganisms in the intestines of people who eat protein without problems, the 'protein breakdown and absorption rate' was more than four times higher than those who complained of abdominal pain. CEO Ji said, "If you take out a healthy person's microbiome and transplant it to someone with a certain function, it can be increased or improved. The same principle is used for protein products of HEM Pharma."

Protein is an essential substance for muscle production. Several products have been released to help with this. There are various types from simple to liquid food. However, there are people who complain of "unconvenient stomach" symptoms because their intestines are full of gas after eating products that contain protein. Some people have symptoms, including constipation and diarrhea. CEO Ji was confident that the microbiome could solve these problems.

CEO Ji said, "As interest in exercise increases, many people are looking for protein products to increase muscle mass," but added, "If you feel uncomfortable after eating the product, it is good to look at the intestinal microorganisms." This is because if there is no microbiome that leads protein to butyric acid (a source of energy for cells and a factor that helps mitochondria's autophagy) so that it can be absorbed well, the stomach may not be filled with gas or raised muscle mass as expected.



CEO of G.Y.S.EP. [Photo by Reporter Shin In-seop]
HEM Pharma released the product "Enzyme Biom" by adding microorganisms that increase protein degradation and absorption to protein powder. The product will soon be sold overseas through Amway. "At the beginning of the launch of the product, we tried to sell the Enzyme Biom only in Korea, but Amway's overseas branch contacted us and we plan to export it to Hong Kong and Vietnam in the first half of this year," CEO Ji said. "We have received an order form (PO) and it is scheduled to be selected around March this year."

B2C Partner Amway…a spur to increase sales

Microbiome companies around the world are developing new drugs, noting that intestinal microorganisms affect health. However, the development process of microbiome-based treatments was slow because it was difficult to prove the way drugs worked in our bodies. Microbiome-based new drugs, which have been approved by regulatory agencies, were difficult to see as new drugs because the feces of people with specific microbiomes were put into the patient's body.

The problem is that as the global investment market has shrunk over the past two to three years, it has become difficult for companies that develop new drugs such as the microbiome to attract funds. HEM Pharma, which originally developed new drugs using the microbiome, also faced such difficulties. HEM Pharma started developing products using the microbiome to secure funds for R&D. One of them is the NZIM bio.

HEM Pharma, which lacked sales capabilities as a new drug developer, solved the sales problem through cooperation with Amway. It was determined that Amway's "multi-stage" characteristic helps expose products directly to consumers in a short time. Many companies that entered the healthcare business to raise actual cash do not have experience in consumer business (B2C) and thus fail to produce results. Ji also considered Amway a multinational company that has entered major healthcare markets such as the U.S. and Japan as an advantage.

CEO Ji did not pay attention to multi-level marketing companies as sales partners from the beginning. The advice of Kang Shin-ik, former president of LG Electronics, a university teacher, served as a guide for management decisions. Kang is an overseas business expert who retired as head of global marketing at LG Electronics and served as vice president of Handong University. CEO Ji said, "I came up with a microbiome business and visited former CEO Kang, who was then vice president of the university, and was advised to meet with a multi-level company with a certain 'B2C' in order to sell the product."

Former President Kang advised that other microbiome businesses promoted by HEM Pharma could also be expanded through cooperation with Amway. HEM Pharma launched Amway and the microbiome analysis service "MyLab" because it is important to build a database (DB) due to the nature of the analysis service. CEO Ji decided that Amway's consumer network would help build and expand the microbiome DB.

CEO Ji explained, "The existing microbiome analysis service only provided the result of 'this is how the microbiome in your intestine' and did not provide a solution. Through cooperation with Amway, HEM Pharma provided microbiome analysis services through MyLab and recommended products to consumers to solve this problem, establishing a structure that leads to sales." Protein product Enzyme Biom is also an example of local supply of products requested by Amway's overseas branch.



CEO Ji gave a positive assessment to the possibility of commercializing PMAS, HEM Pharma's technology, through cooperation with Amway. PMAS is a technology that replicates more than 90 microbiomes. The reaction can be examined by applying various substances to the cloned microbiome. To put it simply, the microbiome