ABL Bio (298380.KQ) is moving to secure Phase 2 (proof-of-concept) results for its core pipeline within five years through its US subsidiary Neox Bio. Based on the clinical data, the company plans to pursue follow-on investment in the US and then review various commercialization options, including a Nasdaq listing, mergers and acquisitions (M&A) and commercialization, to raise its corporate value in the global market.
ABL Bio CEO Lee Sang-hun met with reporters at the BIO International Convention (BIO USA) held in San Diego on Wednesday. "Neox Bio's goal is to secure Phase 2 results within five years," he said. "In the US, M&A is possible, a Nasdaq listing is possible, and there are companies that pursue direct commercialization if clinical trials succeed, so there are various options."
ABL Bio established Neox Bio, an antibody-drug conjugate (ADC) development subsidiary, in the US last year. Starting next year, the company plans to raise Series B funding and use the proceeds to develop candidate substances through Phase 2 trials, then pursue commercialization through various methods including technology licensing, a Nasdaq listing and M&A.
"If we stay in Korea, ultimately there is not much difference from ABL Bio continuing to conduct clinical trials, but in the US there are many opportunities to have the company's own value recognized," Lee explained. "You need assets developed through late-stage clinical trials for an M&A targeting the entire company to become possible."
He also stressed that Korea's bio industry needs to move away from an early-stage technology licensing focus. "Domestically, late-stage clinical assets are scarce while CEO ownership stakes and corporate values are high, making it a structure where it is difficult for global big pharma to acquire companies," Lee said. "In the US, corporate value rises significantly as clinical trials progress, but domestically there is an atmosphere that values companies low without technology licensing."
Over the long term, he presented the goal of building a global innovative biotech model. "Like Denmark's Genmab, I want to raise negotiating power through repeated technology transfers, and like Regeneron, I want to create a business model that shares commercialization profits with partners," he said. "Korea also needs an ecosystem that extends to late-stage clinical trials and commercialization for global bio companies to emerge."
Meanwhile, ABL Bio plans to begin global Phase 3 trials this year for its core pipeline, the gastric cancer bispecific antibody immuno-oncology drug "givastomig (ABL111)." "We are proceeding with budget, production and clinical preparations with our partner NovaRock, and our goal is to enter Phase 3 trials this December," Lee said. "If all development proceeds as planned, we expect commercialization to be possible in five years."
