Korean biotech companies are successfully completing initial public offerings at the top of their indicative price ranges, securing smooth funding. Analysts attribute this trend to companies with solid revenue or technology licensing track records entering the stock market.
According to the Korea Exchange, all biotech companies that conducted book-building this year have finalized offering prices at the top of their indicative ranges. IM Biologics, currently in its subscription period, set its offering price at 26,000 won—the ceiling of its 19,000-26,000 won range—after recording an institutional subscription ratio of 839.23-to-1.
Carna Therapeutics, scheduled to list on KOSDAQ on the 16th, priced at 20,000 won following book-building from the 23rd to 27th of last month. The company achieved an institutional subscription ratio of 962.1-to-1 and a final combined subscription ratio of 1,899.29-to-1.
Trillion-Won Licensing Deals Drive Momentum
The string of successful biotech IPOs this year reflects companies with revenue and technology licensing achievements knocking on KOSDAQ's door. Companies that have secured trillion-won-scale licensing deals are fueling the IPO boom, analysts say.
Both Carna Therapeutics and IM Biologics share a common trait: technology licensing achievements worth approximately 1 trillion won. Carna Therapeutics, a genomics-based innovative drug developer, holds cumulative licensing deals worth approximately 774.8 billion won across bispecific antibodies and antibody-drug conjugates. IM Biologics signed a licensing agreement worth approximately 1.8 trillion won with Navigator Medicine last year.
This pattern mirrors Aimed Bio and RGnomics, which listed late last year and now rank among KOSDAQ's top market caps. Aimed Bio signed a licensing deal worth approximately 1.4 trillion won with Boehringer Ingelheim, while RGnomics secured a deal worth approximately 910 billion won with Eli Lilly.
Reflecting expectations from these achievements, Aimed Bio closed at 65,200 won—up 493% from its 11,000 won offering price—while RGnomics reached 167,500 won, a 200% gain from its 22,500 won offering price. Aimed Bio currently ranks 16th and RGnomics 47th by KOSDAQ market capitalization.
All biotech companies that entered KOSDAQ since December last year priced at the top of their indicative ranges. Opening prices exceeded offering prices across the board: Aimed Bio (+300%), Quad Medicine (+59.67%), Acril (+135.38%), RGnomics (+300%), and Revsmed (+20%). Quad Medicine, Acril, and Revsmed have revenue bases in medical devices or medical AI software.
More Blockbuster IPOs on the Horizon
Biotech companies are raising funds based on concrete results rather than vague expectations about drug development, marking an industry-wide advancement, analysts say. This has heightened anticipation for upcoming biotech IPOs.
Ingenia Therapeutics, a Boston-based biotech company, stands out. The company filed for preliminary KOSDAQ listing review on the 30th of last month, initiating IPO procedures. The firm develops treatments for ocular retinal diseases and glaucoma. Its ocular disease treatment IGT-427 was licensed to a global pharmaceutical company for up to 1 trillion won in 2022.
Adel, a developer of degenerative brain disease drugs, is also considered a major IPO candidate this year. Founded in 2016 by Professor Yoon Seung-yong of the University of Ulsan College of Medicine's Brain Science Department at Seoul Asan Medical Center, Adel licensed its Alzheimer's drug candidate ADEL-Y01 to Sanofi for approximately 1.5 trillion won last year. The deal included 80 million dollars (approximately 118 billion won) in non-refundable upfront payment—the highest upfront-to-total ratio (7.7%) among Korean pharmaceutical and biotech licensing deals signed last year. Currently conducting pre-IPO fundraising, Adel is preparing for technology evaluation for a technology special listing next month.
The Lee Jae-myung government's KOSDAQ stimulus policies are also cited as a tailwind for the biotech market. Lee Dal-mi, a researcher at Sangsangin Securities, said, "Recent government policies changing investment evaluation guidelines to direct pension funds and public funds toward KOSDAQ will positively impact biotech stock prices. The biotech sector currently accounts for 33.4% of KOSDAQ by market cap—the highest share—making it the primary beneficiary of KOSDAQ revitalization policies."
An industry official said, "Korean biotech companies struggled with funding after 2022 as venture capital turned conservative, leading to numerous IPO withdrawals. But recently, companies with concrete track records are pursuing listings, improving the funding environment for biotech firms."
