FNCT Biotech is conducting research and development to normalize stiffened lungs using an antibody that targets this specific molecule. Regarding its new antibody drug for pulmonary fibrosis, FNCT Biotech is proceeding with technology transfer procedures, including signing a Confidentiality Agreement (CDA) and a Material Transfer Agreement (MTA) with a major global pharmaceutical company. E-Daily’s pharmaceutical and biotech premium content platform, Pharm E-Daily, met with co-founders JINYOUNG CO., LTD. and Lee Soo-jae to hear about their future plans.
Founded
in 2021… Identified ‘CSF3’ as a Target for Fibrosis
FNCT Biotech was co-founded in November 2021 by CEO Lee Soo-jae and Vice President Jin Young-woo. CEO Lee earned his bachelor’s, master’s, and doctoral degrees in cell biology from Pusan National University and spent about three and a half years as a postdoctoral researcher at the U.S. National Institutes of Health (NIH). After completing one year and six months as a researcher at Georgetown University School of Medicine, he served as a senior researcher and principal researcher at the Korea Institute of Radiological and Medical Sciences before becoming a professor at Hanyang University.
It is reported that CEO Lee and Vice President Jin met at the Korea Institute of Radiological and Medical Sciences and have maintained a relationship spanning approximately 25 years. After seeing CEO Lee’s technology, Vice President Jin proposed that they co-found the company. Initially, Vice President Jin served as CEO, and the two also served as co-CEOs for a time. The company transitioned to a structure with CEO Lee as the sole CEO starting in January of last year.
The company name, FNCT, stands for “Targeting Fibrosis and Cancer.” CEO Lee is also the lead developer of FB101, an antibody drug for pulmonary fibrosis and FNCT Biotech’s flagship new drug pipeline. He identified granulocyte colony-stimulating factor 3 (CSF3) as a novel target for the treatment of pulmonary fibrosis.
CEO Lee stated, “Until now, the pulmonary fibrosis market has focused on pulmonary fibroblasts,” adding, “We are concentrating on restoring the alveolar cells themselves to their normal state.”
Pulmonary fibrosis is known to be a common side effect of radiation therapy for cancers such as lung and breast cancer. When pulmonary fibrosis occurs, pulmonary fibroblasts secrete collagen, causing the alveoli to stiffen and preventing the lungs from expanding during inhalation. In severe cases, the lungs not only harden but also shrink. This leads to respiratory failure and ultimately death.
CEO Lee said, “In the existing market, TGF-beta is known as the most important target for pulmonary fibrosis treatments,” adding, “However, we have revealed that the mutual feedback loop between TGF-beta and CSF3 is the key mechanism underlying the progression of idiopathic pulmonary fibrosis.”
He explained, “When TGF-beta is inhibited in normal cells, a strong inflammatory response occurs. If this gene is eliminated in mice, the inflammatory response intensifies within two weeks, leading to death.” He continued, “For this reason, there have been attempts to block targets downstream of TGF-beta. However, since it is impossible to block all downstream targets, the efficacy of these drugs has been limited.”
He continued, “We shifted our approach to target CSF3, which is located in the amplification circuit rather than the TGF-beta downstream pathway, and confirmed excellent inhibitory activity at the fibroblast level.” He further noted, “In a mouse model of pulmonary fibrosis, we observed that the mice regained normal mobility just 21 days after administration.”
These findings were published last October in the journal *Signal Transduction and Targeted Therapy* (STTT), which has an impact factor of 52.7—higher than *Nature*’s impact factor of 48.5.
Potential for
Technology Transfer to Global Big Pharma… Series B Round OversubscribedFNCT Biotech recently closed a Series B funding round worth 21.1 billion won. With this, FNCT Biotech has raised a cumulative total of 28.1 billion won in investment. Previously, during its Series A round conducted from 2023 to 2025, the company’s post-money valuation (valuation immediately after the investment) was 22.5 billion won. In this round, the company was valued at 40 billion won on a pre-money basis. Following the completion of the Series B round, the company’s valuation stands at 61.1 billion won.
The funds raised will be used to complete Good Laboratory Practice (GLP) toxicity testing and manufacturing process quality control (CMC) for its lead pipeline candidate, FB101. Based on these results, FNCT Biotech plans to secure a global technology transfer and enter Phase 1 clinical trials next year.
FNCT Biotech is currently proceeding with the necessary steps for technology transfer. The company has signed a Confidentiality Agreement (CDA) with a major global pharmaceutical company and is in the process of finalizing a Material Transfer Agreement (MTA). News of these developments attracted significant investor interest in the Series B round. FNCT Biotech initially planned for a Series B round of 100억 won to 150억 won. However, it oversubscribed by approximately 60억 won.
Following the close of the round, CEO Lee, Executive Vice President Jin, and their affiliated parties collectively hold a stake in the 30% range. Major financial investors (FIs) include Premier Partners, AJU IB INVESTMENT CO., LTD., and Soliderus Investment, while there are currently no strategic investors (SIs).
CEO Lee stated, “The major global pharmaceutical company with which we are proceeding with a material transfer agreement possesses a blockbuster drug in the field of fibrosis that generates annual sales of over $1 billion (approximately 1.5 trillion won), making it outstanding in the field of fibrosis,” and “Even such companies actively consider acquiring external assets if their own drug candidates are incomplete or if the efficacy appears promising when used in combination therapy,” he said.
CEO Lee said, “We expect to be able to continue R&D for about a year and a half with the Series B funding. In the meantime, we are considering generating our own cash flow through technology transfers,” adding, “We are planning an initial public offering (IPO) around early 2029. We are setting a conservative timeline because we cannot predict how the technology transfers will proceed.”
FNCT Biotech may strategically hold one or two investment rounds prior to its IPO. The company currently employs 17 people, 10 of whom are PhD-level researchers.
CEO Lee said, “In terms of personnel, we need business development (BD) experts to facilitate technology transfers and advance into clinical trials, and we plan to recruit a Chief Financial Officer (CFO) to prepare for the IPO.” He added, “On the research front, we believe we can successfully achieve our milestones with the funds secured this time.”
There are quite a few companies, both domestic and international, classified as competitors to FNCT Biotech. The most notable examples include Bristol-Myers Squibb (BMS), which is developing the LPA1 receptor antagonist “BMS-986278” currently in Phase 3 clinical trials, as well as Roche and Genentech, which are developing the OSMRB-targeting antibody “RG6536” currently in Phase 2 clinical trials. In South Korea, companies such as △DAEWOONGPHARMACEUTICAL(069620) △NIBEC CO., LTD.(138610) △BIONEER CORPORATION(064550) (its subsidiary, Sunagen Therapeutics) △Chabiotech Co.,Ltd.(085660) △ILDONG PHARM(249420) △HanmiPharm(128940) are developing new drugs for fibrosis.
CEO Lee stated, “Most companies focus on the outer layers, where collagen deposits accumulate—mechanisms of action (MoA) that either prevent collagen secretion or dissolve collagen.” He added, “(FNCT Biotech) considers such approaches a given and is focusing on whether the alveolar cells themselves can recover. Very few researchers worldwide are studying this. FNCT Biotech is one of the main players in this field.”
