The fact that Ingenia Therapeutics is currently conducting Phase 2/3 clinical trials for a treatment for age-related macular degeneration—a technology it licensed to global pharmaceutical giant Merck (MSD)—is believed to have positively influenced its valuation. Furthermore, as a new drug development company founded overseas by a Korean national, it is expected to serve as a benchmark for other overseas startups following a similar path, showcasing current trends in the IPO market.
Will This Trigger a Valuation Surge for New Drug Developers?
According to the target offering price range of 12,000 to 14,500 won presented by Ingenia Therapeutics in its securities registration statement on the 10th, the company’s market capitalization upon listing is estimated to be between a minimum of 590.2 billion won and a maximum of 713.2 billion won. The final figure will be determined following the bookbuilding process. SamsungSecurities is serving as the lead underwriter.
The market capitalization proposed by Ingenia Therapeutics exceeds the 7000억 won of #Aimed Bio Inc., which went public last December. Naturally, it is also higher than the 4185억 won market capitalization of #Orum Therapeutics, Inc., which listed on KOSDAQ last December, and the 6688억 won market capitalization of ABL Bio Inc.(298380)at the time of its listing in December 2018.
Aimed Bio Inc.’s initial market capitalization of 7000억 won was considered an “outlier.” This is because the market capitalizations of the new drug development companies that went public shortly thereafter—Rznomics Inc. at 3085억 won, Kanaph Therapeutics Inc. at 2581억 won, and IMBiologics Corp. at 3831억 won—remained at about half that of Aimed Bio Inc. If Ingenia Therapeutics successfully completes its bookbuilding process, multiple new drug development companies could achieve market capitalizations in the 7000억 won range, potentially setting a new trend.
In particular, Ingenia Therapeutics’ domestic IPO is expected to set a precedent for overseas startup drug developers—including △Pine Tree Therapeutics, △Breeze Bio (formerly GeneEdit), and △Kaijin—that plan to list on KOSDAQ in the future.
Meanwhile, due to macroeconomic instability and supply-demand imbalances in semiconductor stocks, the share prices of quite a few biotech companies have fallen back to their initial public offering (IPO) prices. Investors are advised to exercise caution when making investment decisions.
The closing prices on the 15th for major new drug development companies that have listed on KOSDAQ as new players since last December were: △Aimed Bio Inc. at 27,750 won (IPO price: 11,000 won), △Rznomics Inc. at 88,700 won (IPO price: 22,500 won), △Kanaph Therapeutics Inc. at 19,630 won(IPO price: 20,000 won), and △IMBiologics Corp. at 26,500 won (IPO price: 26,000 won). Rznomics Inc. announced in a regulatory filing on the 15th a plan for a 1-for-1 stock split; upon completion, the per-share value is expected to be halved.
iBio, Subject to a License-Out Agreement, to Become a Wholly-Owned Subsidiary of Merck in 2024Ingenia Therapeutics was founded in March 2018 by CEO Han Sang-yeol. CEO Han earned a bachelor’s degree in Life Sciences from Seoul National University and a Ph.D. in Molecular Biology from the same university’s graduate school. He served as a researcher and full-time lecturer at Harvard Medical School from 2002 to 2010, and after working at the Samsung Advanced Institute of Technology from 2010 to 2015 and the Institute for Basic Science, he went on to found Ingenia.
Injenia Therapeutics’ core technologies are the LCIDEC platform and TIE-body technology. The company acquired the TIE-body technology from the Institute for Basic Science at KAIST and used it as the foundation to independently develop the LCIDEC platform. Utilizing this platform, Ingenia Therapeutics is developing key pipeline candidates, including △ IGT-427 for retinal diseases, △ IGT-302 for glaucoma, and △ IGT-303 for chronic diseases.
In October 2022, Ingenia Therapeutics transferred the technology for IGT-427 and IGT-302 to EyeBio, a U.S.-based biotech company. iA, Inc. was subsequently merged into Merck (MSD) as a wholly-owned subsidiary in July 2024; the total value of the acquisition at that time amounted to approximately 4.5 trillion won, consisting of an upfront payment of 1.9 trillion won and milestone payments of 2.5 trillion won.
It has been confirmed that Ingenia Therapeutics’ IGT-427 is currently undergoing Phase 2b/3 clinical trials by MSD under the project name “MK-8748.” MK-8748 is a treatment for neovascular age-related macular degeneration, and Ingenia Therapeutics generated cumulative revenue of $38.37 million (approximately 52 billion won) through technology transfers related to this pipeline as of last October.
According to the company, it is expected to receive milestone payments totaling approximately 48.6 billion won from Merck this year related to IGT-302 and IGT-427. Furthermore, the company’s short-term goal is to license IGT-303, a treatment for chronic kidney disease currently undergoing its own Phase 2a clinical trial, by 2027. The price range for this KOSDAQ initial public offering was determined based on these revenue projections.
CEO’s Stock Option Holdings: A ‘Unique Feature’
The largest shareholder of Ingenia Therapeutics is CEO Han Sang-yeol. His pre-IPO stake, including trust holdings, stands at 19.24% and will be diluted to 17.2% post-IPO. A notable point is that CEO Han has also been granted stock options. If he exercises these options, his control over the company could increase.
According to Article 340-2 of the Korean Commercial Act, a company may not grant stock options to major shareholders holding 10% or more of the shares or to individuals who exercise de facto influence over management matters. Under Korean law, it would be impossible for CEO Han to hold stock options.
However, in the United States, there are numerous cases where stock options are granted to the CEO, who is also the largest shareholder, and this is reportedly a common non-cash incentive structure, particularly in the biotech sector. If Ingenia Therapeutics is listed in Korea in the future, the company will be subject to compliance obligations under Korean law in addition to U.S. regulations; therefore, the company does not plan to grant additional stock options to CEO Daesang.
Intervest is Ingenia Therapeutics’ second-largest shareholder, holding a 12.16% stake following the public offering. Intervest may sell 9.6% of its holdings one month after Ingenia Therapeutics’ listing. Additional shares subject to lock-up restrictions will be released at the three-month and one-year marks.
In addition to Intervest, Aureum Asset Management is another major financial investor (FI). Aureum Asset Management held stakes of 11.9% and 7.9% in Ingenia Therapeutics through two separate funds. Aureum Asset Management’s lock-up on a combined 12.4% stake in Ingenia Therapeutics will be lifted one month after the company’s IPO. Similarly, additional lock-up shares will be released sequentially at the three-month and one-year marks.
In addition to the above, it is notable that Stonebridge Ventures, Inc. holds a 2.9% stake Huons Co., Ltd.(243070)and holds a 2.5% stake (1,219,513 shares). Pathway Partners also holds a 0.9% stake.
