Orum Therapeutics Raises 145 Billion Won Despite Holding 150 Billion in Liquid Assets

Orum Therapeutics (475830.KQ) announced it has secured 145 billion won ($101 million) in convertible preferred stock (CPS) investment, drawing investor attention to the rationale behind the fundraising.

According to Orum Therapeutics on Monday, the investment round was led by existing investor KB Investment, with participation from other current backers including IMM Investment, Woori Venture Partners, and Starset Investment. New investors joining the round include Boston-based global asset manager Weiss Asset Management, Korea Investment Partners, DSC Investment, Company K Partners, Aon Investment, and Daily Partners.

The proceeds will be used to advance Orum's drug pipeline development including ORM-1153, while also enhancing its Degrader-Antibody Conjugate (DAC) platform through development of new payloads beyond GSPT1. The funds will also support additional targeted DAC program development based on rational payload design considering selectivity and efficacy, along with expansion of the scientific and operational infrastructure required for these initiatives. Orum explained this will serve as the foundation for continuously creating differentiated DAC therapeutics for cancer and other serious diseases.

Market observers have expressed surprise at Orum's decision to raise capital. As of the end of September this year, the company held liquid assets totaling 149.7 billion won. Additionally, Orum is expected to receive milestone payments from Bristol-Myers Squibb (BMS) for ORM-6151, which was licensed to the pharmaceutical giant in 2023. At the time of its listing, Orum indicated it anticipated receiving milestone payments from BMS next year.

Some observers speculate that Orum may be preparing for technology licensing or mergers and acquisitions to bring in new payloads. Orum's current DAC platform TPD² uses a molecular glue that inhibits the GSPT1 protein as its payload. Both ORM-5029 and ORM-6151, currently in Phase 1 clinical trials, utilize GSPT1 molecular glue as their payload. Applying different payloads could enable the elimination of other proteins that cause disease or play critical roles in cancer cell survival.

"The purpose of this fundraising is to achieve our ongoing R&D objectives at a broader scope and faster pace," an Orum official said. "This investment round saw participation from many venture capital firms that have supported Orum since before our IPO, demonstrating their confidence in our future potential and corporate value."

"We will improve treatment for cancer and other serious diseases by developing DAC therapeutics that combine powerful degrader payloads with the precision delivery of antibody-based technology," said Lee Seung-ju, CEO of Orum Therapeutics. "This investment will serve as a crucial foundation for advancing our key pipelines approaching clinical stages, developing new payloads, and building a platform capable of creating differentiated drug candidates across various disease areas beyond oncology."