The Biotechnology Revolution: A New Turning Point in AI-Based Drug Development and Personalized Medicine in 2026
Editor
In 2026, the biotechnology industry has entered a new growth trajectory through its integration with artificial intelligence. The global AI-based drug development market has grown by 42%, from $12.7 billion in 2025 to $18 billion this year, indicating that innovative approaches surpassing the limitations of traditional drug development methods are spreading across the industry. Particularly, as molecular design and protein structure prediction technologies utilizing deep learning algorithms reach commercialization, there is growing anticipation that the drug development period could be shortened from the traditional 10-15 years to 5-7 years, drawing the attention of investors and the pharmaceutical industry.
The Korean biotech ecosystem is also undergoing rapid changes. According to the latest report from the Korea Biotechnology Association, the total revenue of domestic biotech companies in 2025 increased by 28% compared to the previous year, reaching 24.5 trillion won, with companies utilizing AI-based platforms achieving an average growth rate of 45%. Samsung Biologics, headquartered in Songdo, Incheon, announced that its Q4 2025 revenue was 1.24 trillion won and operating profit was 320 billion won, marking a growth of 35% and 42%, respectively, compared to the same period last year. This reflects the surging demand for contract manufacturing of biopharmaceuticals from global pharmaceutical companies, with the expansion of mRNA vaccine and antibody therapeutic production lines acting as key growth drivers.
The field of Personalized Medicine is showing more concrete results as of 2026. With the cost of genomic analysis dropping from $1,000 in 2020 to around $200 now, treatments based on individual genetic characteristics are becoming mainstream. Illumina, headquartered in San Diego, California, reported an annual revenue of $4.9 billion in 2025, an 18% increase from the previous year, with the Asia-Pacific region accounting for 32% of total sales, showing the fastest growth rate. In the Korean market, personalized genetic testing services are rapidly growing, and according to data from the Health Insurance Review and Assessment Service, the number of reimbursements related to genetic testing in 2025 increased by 67% compared to the previous year.
Acceleration of Commercialization of AI-Based Drug Development Platforms
The credibility of the industry is significantly improving as AI-based drug development platforms lead to actual clinical results. DeepMind’s AlphaFold technology, based in London, UK, has databased over 200 million protein structures, enabling researchers worldwide to explore drug candidates. In 2025 alone, 2,847 research papers utilizing the AlphaFold database were published, a 156% increase from 2024. This technological advancement is particularly showing groundbreaking results in the development of treatments for rare and intractable diseases.
U.S. biotech companies are successfully attracting investment as drug candidates developed through AI platforms show positive results in clinical trials. Moderna, headquartered in Cambridge, Massachusetts, initiated seven new clinical trials in 2025 through its AI-driven mRNA therapeutic development platform, with three programs showing significant effects in Phase 2 trials. The company’s 2025 revenue was $13.4 billion, a 23% increase from the previous year, with $1.2 billion in revenue from the personalized cancer vaccine sector. This is a result of being able to manufacture customized vaccines tailored to each patient’s tumor characteristics through AI-based antigen prediction algorithms.
In Korea, AI-based drug development startups are gaining attention. Standigm announced that its drug candidate SDM-8204, discovered through its proprietary AI platform ‘Standigm ASK,’ received Investigational New Drug (IND) approval from the U.S. FDA in December 2025. This marks the first instance of a Korean AI drug development company receiving clinical trial approval in the U.S., considered a symbolic achievement showcasing the global competitiveness of Korea’s biotech industry. Industry experts predict that this success will act as a catalyst for revitalizing biotech investment in Korea.
Global pharmaceutical companies are also significantly expanding their investments in AI-based drug development. Roche, headquartered in Basel, Switzerland, announced a $1.5 billion investment in AI and data science in 2025, accounting for about 12% of its total R&D budget. The company is particularly focusing on biomarker discovery and patient stratification using AI in the oncology field, with oncology sales in 2025 increasing by 19% from the previous year to $17.8 billion. Johnson & Johnson, headquartered in New Brunswick, New Jersey, also invested $1.2 billion in 2025 to build an AI-based drug development platform, with five drug candidates discovered through its proprietary AI platform currently in clinical trial stages.
Popularization of Personalized Medicine and Precision Medicine
The most notable area in the field of Precision Medicine is cancer treatment. With advancements in next-generation sequencing (NGS) technology and cost reductions, tumor genomic analysis is being integrated into routine clinical practice. Thermo Fisher Scientific, headquartered in Waltham, Massachusetts, announced a revenue of $19.9 billion in its life sciences solutions division in 2025, a 14% increase from the previous year. The growth was particularly prominent in the Asia-Pacific region, with NGS-related product sales in East Asian markets, including Korea, increasing by 28% from the previous year. This trend is closely related to the expansion of precision medicine centers in major hospitals in Korea.
Korean medical institutions are also actively adopting personalized treatment. Asan Medical Center in Seoul conducted a total of 8,400 tumor genomic analyses through its precision medicine center in 2025, a 45% increase from the previous year. Clinical data revealed that patients receiving personalized treatment based on analysis results had a 23% higher treatment response rate on average compared to standard treatments. Samsung Medical Center also introduced an AI-based genomic analysis platform, reducing analysis time from the previous two weeks to three days, completing 5,200 analyses in 2025. These achievements are aligned with the policy support of the National Health Insurance Service, which expanded the reimbursement scope for genomic analysis of specific cancer types starting in 2025.
In the field of cell therapy, personalized approaches are also spreading. Celltrion, headquartered in Songdo, Incheon, announced a complete remission rate of 78% in clinical trials of its CAR-T cell therapy developed in 2025, 15% higher than existing foreign products. The company’s 2025 revenue was 2.84 trillion won, a 31% increase from the previous year, with the biopharmaceutical sector accounting for 67% of total revenue, driving growth. Celltrion plans to apply for regulatory approval of its CAR-T cell therapy in the first half of 2026, which, if successful, is expected to become the first commercialized CAR-T therapy in Korea.
In the field of gene therapy, the safety and efficiency of CRISPR-Cas9 technology have significantly improved, allowing its application to more diseases. In 2025, 247 clinical trials of CRISPR-based gene therapy were conducted worldwide, a 67% increase from 2024. Notable breakthroughs have been made in the treatment of sickle cell disease and beta-thalassemia, with CRISPR therapies approved in the U.S. and Europe achieving total sales of $1.8 billion in 2025. In Korea, CRISPR technology development is actively progressing, centered around the Institute for Basic Science (IBS), with 34 papers related to next-generation gene editing technology developed by domestic researchers published in international journals in 2025.
Along with the spread of personalized treatment, the related diagnostic technology market is also rapidly growing. The liquid biopsy market recorded a global scale of $6.7 billion in 2025 and is expected to grow to $8.9 billion in 2026. This technology enables the early detection and treatment monitoring of cancer by analyzing circulating tumor DNA (ctDNA) derived from cancer cells using only a blood sample. Genomictree in Korea recorded a revenue of 34 billion won in 2025 with its proprietary liquid biopsy technology and is conducting clinical trials for entry into the Japanese and Southeast Asian markets. Industry experts predict that liquid biopsy technology will gradually replace traditional tissue biopsies, significantly enhancing the accessibility of personalized treatment.
As of 2026, the biotechnology industry stands at a turning point where technological maturity and commercial feasibility are simultaneously increasing. As AI-based drug development and personalized medicine technologies lead to actual clinical outcomes, investor confidence is recovering, signaling the start of a new investment cycle. With the global competitiveness of Korea’s biotech ecosystem proven, the overseas expansion and global partnership building of domestic companies are expected to accelerate. However, changes in the regulatory environment, ethical considerations, high development costs, and long investment recovery periods remain fundamental challenges impacting industry development. The sustainability of growth in this field over the next five years is expected to be heavily influenced not only by technological innovation but also by the policy direction of regulatory authorities and the adaptability of the healthcare insurance system.
*This analysis is provided for general informational purposes and is not intended as specific investment advice or medical recommendations. Please consult with a professional before making investment decisions.*
