As the KOSDAQ struggles with a recent focus on semiconductor stocks, major biotech companies are making moves to go public, raising questions about whether investor sentiment in the sector can be revived.
On July 22, investment banking sources reported that NexEye, a developer of immuno-oncology therapies, and Adel, which focuses on treatments for neurodegenerative diseases, submitted preliminary applications for KOSDAQ listings to the Korea Exchange the previous day. The pre-IPO valuations for the two companies are approximately 400 billion won for NexEye and 349 billion won for Adel.
Both companies have validated their research and development capabilities and business potential by securing large technology transfer contracts with global pharmaceutical firms. Founded in 2021, NexEye established its immuno-oncology target discovery platform, OncoKine, and successfully transferred its candidate drug, NXI-101, to Ono Pharmaceutical in March 2024, just three years after its inception. The company has also recently received milestone payments related to its clinical entry. NexEye plans to offer 5 million shares, with CEO Yoon Kyung-wan holding a 14% stake, and Korea Investment & Securities serving as the lead underwriter.
Established in 2016, Adel co-developed its Alzheimer’s treatment candidate, ADEL-Y01, with Oscotec and transferred it to Sanofi for 1.5 trillion won in December of last year. The upfront payment, which does not require repayment, amounts to $80 million (approximately 118 billion won). Adel plans to offer 2.17 million shares, with CEO Yoon Seung-yong holding a 37% stake, and Samsung Securities and Mirae Asset Securities acting as lead underwriters.
Considering that the preliminary review period for listings typically lasts around 45 business days, both companies could receive results from their applications around the Chuseok holiday. If the review proceeds without issues, both firms are expected to enter the KOSDAQ by the end of the year.
Other biotech companies are also aiming for KOSDAQ IPOs in the second half of the year. Ingenia Therapeutics is targeting a listing as early as next month, while Breeze Bio has recently passed a biotech technology assessment and plans to apply for a preliminary listing this year.
Currently, the KOSDAQ biotech sector is experiencing weakened investor sentiment due to a focus on semiconductor stocks and clinical issues surrounding some large firms like Kolon TissueGene and HLB Therapeutics. An investment banking source noted, “The overall weakness in biotech stocks is a result of the recent semiconductor supply focus and clinical issues faced by major biotech companies. However, NexEye and Adel, with their significant global technology transfer achievements worth hundreds of billions to trillions of won, are being viewed as noteworthy biotech candidates in the upcoming IPO market.”
* This article has been translated by AI.
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