LigaChem Bio (141080) has secured 500 billion won in direct investment from the National Growth Fund, a government-led policy fund. This marks the first time the National Growth Fund has invested directly in a listed company, and it is also the first such direct investment in a biopharmaceutical new drug company. Combined with its existing cash and cash equivalents, LigaChem Bio has secured cash in the 900 billion won range, enabling it to accelerate development of antibody-drug conjugate (ADC) new drugs.
LigaChem Bio said Friday it had raised a total of 500 billion won from the National Growth Fund. The financing consists of 170 billion won in convertible bonds (CB) and 330 billion won in convertible preferred shares. Participants include the Korea Development Bank, the management and operating agency of the Advanced Strategic Industry Fund; Pan Orion (an Orion Hong Kong affiliate), the largest shareholder of LigaChem Bio; and a third financial investor. The investment is being carried out through a third-party allotment.
LigaChem Bio currently holds 418 billion won in cash and cash equivalents (as of the end of the first quarter this year). "The cash currently held is funding for existing businesses and the operation of ongoing pipelines," a LigaChem Bio official said. "This financing is a long-term strategic investment resource aimed at everything from late-stage clinical development to the launch of global new drugs."
Backed by this financing, LigaChem Bio is expected to accelerate development of its own ADC new drugs. "LNCB74," a B7-H4 target ADC new drug being co-developed with NextCure, is undergoing Phase 1 clinical trials in patients with solid tumors. "LCB02A," a Claudin 18.2 (CLDN18.2) target ADC new drug, is targeting entry into global clinical trials in the third quarter of this year.
"This selection means that our ADC original technology and global new drug development capabilities have been recognized as core strategic assets at the national level," a LigaChem Bio official said. "By proactively securing long-term and stable capital, we have established a financial foundation that allows us to focus on development across the entire process of clinical trials, approval, and commercialization."
Meanwhile, the National Growth Fund is a government-led fund being raised at a total scale of 150 trillion won over five years to foster advanced strategic industries. It supplies funds to companies in advanced strategic industry fields by combining 75 trillion won from the Advanced Strategic Industry Fund with 75 trillion won in private capital.
