A New Turning Point in Biotechnology Innovation: Market Restructuring Driven by AI and Synthetic Biology in 2026
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AI-Based Drug Development Redefining the Biotech Ecosystem
As of 2026, the biotechnology industry is experiencing a fundamental paradigm shift with the introduction of artificial intelligence and machine learning technologies. The global biotechnology market has reached a scale of $1.23 trillion, growing by 18.2% compared to 2025, with the AI-based drug development sector accounting for $283 billion, or 23% of the total market. Notably, the traditional drug development process, which typically took 12-15 years, is now being reduced to 7-9 years with the adoption of AI technology. This change goes beyond mere efficiency improvements and is restructuring the business models of biotech companies.
While California-based biotech companies in the U.S. are leading this field, Asian companies are quickly catching up. South Korea’s Samsung Biologics, based in Incheon, recorded a 34% increase in Q4 2025 sales compared to the same period the previous year, reaching 1.89 trillion won, demonstrating the investment effects in building an AI-based biopharmaceutical production platform. Additionally, Celltrion, also based in Incheon, announced that it has reduced the development period for new biosimilars from the previous 5-6 years to 3-4 years through its self-developed AI-based antibody optimization platform. These achievements by Korean companies symbolically represent the shift in Asia’s status in the global biotech market.
Meanwhile, Biogen, based in Massachusetts, USA, is investing $2.5 billion annually in AI-based neurodegenerative disease treatment development following the commercial failure of its Alzheimer’s drug, Aducanumab. The company reported that by the end of 2025, three out of 15 new targets identified through its AI platform had entered Phase 1 clinical trials. This is evaluated as a 40% reduction in the time from target discovery to clinical entry compared to traditional methods. Gilead Sciences, based in California, is also focusing on developing AI-based antiviral drugs using data accumulated in the HIV treatment field, and plans to announce Phase 2 clinical trial results for a universal antiviral drug responding to COVID-19 variants in the first half of 2026.
Innovative changes are also accelerating in the field of synthetic biology. The global synthetic biology market is expected to grow by 27% from $35 billion in 2025 to $44.5 billion in 2026, significantly exceeding the overall growth rate of the biotech industry. Particularly noteworthy is the bio-manufacturing using microorganisms, with Roche, based in Basel, Switzerland, establishing a synthetic biology-based personalized cancer treatment production platform and commencing commercial production from Q4 2025. This platform can produce customized antibodies tailored to a patient’s tumor genetic profile within 72 hours, dramatically shortening the previous 4-6 week process.
Acceleration of Global Expansion by Asian Biotech Companies
The global market entry of Asian biotech companies is becoming more active in 2026. The total revenue of the Korean biotech industry is expected to grow by 21% from 28 trillion won in 2025 to an estimated 34 trillion won in 2026, with the proportion of overseas sales increasing from 45% to 52%. As of January 2026, Samsung Biologics has signed a total of 47 biopharmaceutical contract manufacturing agreements with 13 global pharmaceutical companies, handling 12% of global biopharmaceutical production through the operation of its fourth plant with an annual production capacity of 360,000 liters. This is a significant increase from 8% in August 2023, indicating that Asian companies are emerging as global bio-production hubs.
Chinese biotech companies are also showing remarkable achievements. CAR-T cell therapies developed by biotech companies based in Shanghai received U.S. FDA approval in 2025, marking the first commercialization success in the North American market by an Asian company. The North American sales of this therapy in Q4 2025 reached $320 million, with annual sales expected to reach $1.5 billion in 2026. Japanese biotech companies are establishing a unique position in the regenerative medicine field, with a Kyoto-based company receiving approval from Japan’s Ministry of Health, Labour and Welfare for its iPS cell-based Parkinson’s disease treatment by the end of 2025, and plans to submit an approval application to the European Medicines Agency (EMA) in the first half of 2026.
Novo Nordisk, based in Copenhagen, Denmark, is focusing on expanding into the obesity treatment market based on its dominant position in the diabetes treatment market. The company’s GLP-1 class obesity treatment, Wegovy, recorded global sales of $8.9 billion in 2025, capturing 34% of the overall obesity treatment market. Particularly notable is the growth in the Asian market, with sales in South Korea and Japan increasing by 127% and 89%, respectively, compared to the previous year. This achievement is analyzed as a result of the increasing obesity population in Asia combined with improved access to biopharmaceuticals.
AbbVie, based in Illinois, USA, is expanding its autoimmune disease treatment portfolio based on its accumulated expertise in immunology. Despite the patent expiration of its flagship product, Humira, the sales growth of next-generation immunosuppressants Rinvoq and Skyrizi is minimizing the overall sales decline. As of 2025, Rinvoq’s global sales reached $3.1 billion, and Skyrizi’s reached $7.8 billion, with both products expected to maintain over 30% growth in 2026. Particularly, the growth rate in the Asia-Pacific region is 45%, highlighting the increasing importance of Asia in the global biopharmaceutical market.
Investment patterns in the biotech industry are also changing in 2026. Venture capital investment in biotech recorded $28.7 billion globally in 2025, a 15% decrease compared to 2024. However, biotech investment in Asia increased by 23% to $6.7 billion, with its share of global investment rising from 19% to 23%. This change in investment patterns is attributed to the improved technological competitiveness of Asian biotech companies and the regulatory environment, which is enhancing investor confidence. In South Korea, venture investment in the biotech sector reached 1.2 trillion won in 2025, an 18% increase from the previous year, with 35% of the investment directed towards AI-based drug development companies.
Changes in the regulatory environment are also significantly impacting the development of the biotech industry. The U.S. FDA announced new guidelines for AI-based drug development in 2025, making the transparency and verifiability of AI algorithms key elements in the approval process. The European Medicines Agency (EMA) is also expanding its Scientific Advice program for AI-based drug development products from January 2026. The Korean Ministry of Food and Drug Safety also announced the ‘AI-Based Drug Development Guidelines’ in December 2025, actively supporting the use of AI technology by domestic biotech companies. These improvements in the regulatory environment are becoming crucial drivers for accelerating the adoption of innovative technologies by biotech companies.
In 2026, the biotechnology industry is at a turning point where technological innovation and market expansion are progressing simultaneously. The convergence of AI and synthetic biology is changing the paradigm of drug development, and the global expansion of Asian companies is reshaping market dynamics. For investors, the ability to select companies that possess both technological prowess and market accessibility is more important than ever. Companies with AI-based platforms and global production and distribution capabilities are expected to continue sustainable growth over the next five years. The future of the biotechnology industry is anticipated to be led by companies with integrated capabilities across the ecosystem, offering new opportunities and challenges to investors.
*This article is for informational purposes only and does not constitute investment solicitation or advice. Investment decisions should be made at one’s own risk.*
