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A New Turning Point in Biotechnology: The Transformation of the Life Sciences Industry in 2025 Driven by AI and Gene Editing Technology

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Rapid Growth of AI-Based Drug Development

As of 2025, the global biotechnology industry is undergoing fundamental changes with the introduction of artificial intelligence and machine learning technologies. According to the latest report by market research firm McKinsey, the AI-based drug development market is projected to grow from $3.5 billion in 2024 to $14.8 billion by 2030, with an average annual growth rate of 28.4%. This growth is driven by the urgent need of pharmaceutical companies to overcome the limitations of traditional drug development processes. Typically, developing a new drug takes an average of 15 years and costs $2.6 billion, but analysis suggests that utilizing AI technology can reduce this period to 7-10 years and cut costs by over 40%.

A New Turning Point in Biotechnology: The Transformation of the Life Sciences Industry in 2025 Driven by AI and Gene Editing Technology
Photo by DALL-E 3 on OpenAI DALL-E

Particularly noteworthy is the speed at which Korean biotech companies are adopting AI. Samsung Biologics, headquartered in Seongnam, Gyeonggi Province, announced that it improved production efficiency by 23% by implementing an AI-based biopharmaceutical production optimization system in the first half of 2025. The company recorded sales of 3.1 trillion won in 2024, an 18% increase from the previous year, and plans to expand AI technology investments by 45% in 2025 compared to the previous year. Celltrion, located in Songdo, Incheon, is also focusing on developing biosimilars using an AI platform and, as of the third quarter of 2025, has six AI-supported pipelines.

In the global market, Gilead Sciences, headquartered in Foster City, California, holds a leading position in AI drug development. The company announced a $500 million investment in early 2025 for the development of AI-based antiviral therapies and reported success in enhancing the efficacy of HIV and hepatitis treatments by 30% using machine learning algorithms. Moderna, based in Cambridge, Massachusetts, is also accelerating the development of personalized therapies by combining mRNA vaccine technology with AI, with 12 AI-supported clinical trials underway as of 2025.

The application scope of AI technology extends beyond drug discovery to clinical trial design, patient recruitment, and data analysis. Industry analysts predict that AI could increase the success rate of clinical trials from the current 12% to 25%, potentially saving the pharmaceutical industry over $100 billion annually. The use of AI is particularly increasing in the development of treatments for rare diseases, where virtual clinical trials and analysis of real-world data provide new breakthroughs due to the difficulty in designing trials with a small patient population.

Acceleration of CRISPR Gene Editing Technology Commercialization

In the field of gene editing technology, next-generation technologies beyond CRISPR-Cas9 are entering the commercialization phase, attracting market attention. The global gene editing market is estimated to be worth $12.7 billion as of 2025 and is projected to grow at an average annual rate of 19.2% to reach $31.2 billion by 2030. Among these, therapeutic gene editing accounts for 68% of the total market, representing the largest share. CRISPR Therapeutics, headquartered in Cambridge, Massachusetts, set a new milestone in the commercialization of gene editing therapies by receiving European approval for its sickle cell disease treatment ‘CTX001’ in November 2025.

Notable advancements include the clinical application of base editing and prime editing technologies. These technologies are gaining attention as next-generation gene editing technologies due to their higher accuracy and fewer side effects compared to existing CRISPR technologies. Illumina, headquartered in San Diego, California, launched a gene editing platform linked to next-generation sequencing technology in 2025, expanding its market share. The company’s third-quarter 2025 revenue was $1.23 billion, a 15% increase from the same period last year, with gene editing-related revenue accounting for 34% of the total.

In Korea, gene editing technology development is also actively underway. A new base editing technology developed by researchers centered around KAIST and Yonsei University was published in the international journal Nature in the first half of 2025, gaining global attention. This technology reportedly improved accuracy by 97% compared to existing methods while reducing unwanted mutations by over 90%. Domestic biotech companies are developing gene editing therapies based on these research achievements, and specialized companies like ToolGen are generating revenue through technology transfer agreements with overseas pharmaceutical companies.

The application range of gene editing technology is rapidly expanding. Initially focused on treating single-gene disorders, recent applications have diversified to include cancer treatment, immune disorders, and even anti-aging. Next-generation immunotherapies combining CAR-T cell therapy and gene editing technology are particularly noteworthy. In this field, American and Chinese companies are engaged in fierce competition, with China experiencing rapid growth supported by large-scale government investments. As of 2025, China’s gene editing market is estimated to be worth $2.8 billion, a 32% increase from the previous year.

However, challenges remain in the commercialization process of gene editing technology. The biggest issue is the burden of treatment costs. Currently approved gene editing therapies are priced at $2-3 million per patient, significantly limiting accessibility. Additionally, there is a lack of long-term safety data, and ethical controversies persist, making the approval process by regulatory authorities challenging. To address these issues, the industry is simultaneously developing automation technologies to reduce manufacturing costs and pursuing policy efforts to expand insurance coverage.

Another major trend in the biotechnology industry is the spread of precision medicine. As the cost of genomic analysis continues to decline, treatments tailored to individual genetic characteristics are becoming a reality. The cost of whole-genome sequencing has fallen to around $600 as of 2025 and is expected to drop below $100 by 2030. This cost reduction is accelerating the popularization of precision medicine, particularly in the field of cancer treatment, where the companion diagnostics market, which analyzes a patient’s genetic profile to select the optimal treatment, is rapidly growing.

The global precision medicine market is estimated to be worth $289 billion as of 2025 and is expected to grow at an average annual rate of 11.8% to reach $495 billion by 2030. While American companies hold a leading position in this market, Asian companies are catching up rapidly. In particular, generic drug manufacturers in China and India are expanding their business areas into personalized therapies, intensifying market competition. In Korea, existing pharmaceutical companies like Green Cross are increasing investments in developing precision medicine solutions, and the government is supporting related technology development through the K-Bio Grand Challenge project.

Examining investment trends in the biotechnology industry, venture investment in global biotech startups reached $17.8 billion as of 2025, a 23% increase from the same period last year. While the focus of investment remains in the United States, the share of Europe and Asia is gradually expanding. A biotech hub centered around Singapore and Hong Kong is forming, attracting global investment funds. In Korea, venture investment in the biotech sector reached a record high of $1.2 billion in 2025, attributed to the government’s policies to foster the biotech field and the expansion of bio-businesses by large corporations.

However, the biotechnology industry also faces significant challenges. The most pressing issue is the complexity of the regulatory environment. The lack of clear regulatory guidelines for new technologies creates uncertainty for companies in the product development and commercialization process. In particular, existing regulatory frameworks are inadequate for properly evaluating AI-based medical devices or gene editing therapies. The U.S. FDA plans to announce new approval guidelines for AI-based medical devices in the second half of 2025, and the European Medicines Agency (EMA) is also working on similar regulatory improvements.

The shortage of skilled personnel is also a serious issue. The biotechnology field requires interdisciplinary knowledge encompassing life sciences, engineering, and data science, but there is a significant shortage of professionals with these capabilities. According to a McKinsey survey, 85% of global biotech companies struggle to secure suitable talent, and finding experts knowledgeable in both AI and biotechnology is particularly challenging. As a result, major biotech companies are expanding collaboration programs with universities and investing heavily in employee retraining.

Supply chain stability is also emerging as an important issue. Following the COVID-19 pandemic, the vulnerability of the supply chain for biopharmaceutical raw materials and equipment has been exposed, prompting companies to diversify and localize their supply chains. There is active movement to disperse the production of active pharmaceutical ingredients (APIs), which were concentrated in China, to other regions. The Korean government announced a 300 billion won investment in 2025 to support the localization of biopharmaceutical raw materials, aiming to improve supply chain independence.

Looking ahead to the future of the biotechnology industry, technology convergence and platformization are expected to be key keywords. As various technologies such as AI, gene editing, cell therapy, and nanotechnology combine, new forms of therapies are anticipated to emerge. Additionally, moving away from the traditional vertical integration model, collaboration through open platforms will become increasingly important. Some global pharmaceutical companies are already adopting strategies to secure new technologies through partnerships with external innovative companies rather than relying solely on in-house research and development.

From an investment perspective, the biotechnology sector is still evaluated as having high growth potential. In particular, the fields of AI-based drug development and gene editing therapies are expected to grow at an average annual rate of over 20% over the next 5-10 years. However, given the technological uncertainties, regulatory risks, and high development costs, risk management through portfolio diversification is essential. Industry experts recommend considering not only technological capabilities but also regulatory response capabilities, partnership-building skills, and financial stability when investing in biotechnology. As of the second half of 2025, the resurgence of IPOs by biotech companies is interpreted as a positive signal indicating market recovery.

This content is not intended for investment solicitation or stock recommendations, and investment decisions should be made carefully through thorough review and consultation with experts.

#SamsungBiologics #Celltrion #GileadSciences #Moderna #Illumina #CRISPRTherapeutics

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