[Edaily Reporter KIM SAE-MI ] HLB PHARMACEUTICAL(047920)has finalized its initial offering price, causing the size of its rights offering to plummet by 49.3% from the originally planned 120 billion won to 60.9 billion won. Consequently, the company’s capital utilization plan has also been significantly revised.

HLB PHARMACEUTICAL announced on the 3rd that it had finalized the initial offering price at 5,650 won per share. This is 49.3% lower than the originally planned offering price of 11,150 won. Consequently, the size of the capital increase has been reduced by nearly half, from 120 billion won to 60.9 billion won.

It is presumed that the halving of HLB PHARMACEUTICAL’s capital increase was influenced by the fact that HLB INC.(028300)received a third Complete Response Letter (CRL) for its riboceranib and camrelizumab combination therapy. HLB PHARMACEUTICAL’s stock price, which stood at 12,240 won on July 9, plummeted by approximately 49.6% to 6,170 won on July 13—a drop of nearly 49.6% in just two trading days. Although the stock price recovered somewhat afterward, the closing price on July 31—the reference date for determining the initial offering price—was only 8,150 won.

With the fundraising target cut in half, the company’s funding plan has also changed significantly.

Originally, HLB PHARMACEUTICAL planned to use a total of 120 billion won, comprising 55 billion won for facility investments, 50 billion won for working capital, and 15 billion won for debt repayment. According to the revised funding plan, while the 55 billion won for facility investments remains unchanged, working capital has plummeted from 50 billion won to 5.9 billion won, and the 15 billion won allocated for debt repayment has been entirely eliminated. The company plans to use its new Hyangnam plant to secure the production capacity needed to shift the manufacturing of outsourced products in-house, secure reimbursement for citrelene, and mass-produce improved new drugs.

Operating funds have also been reorganized with a focus on research and development (R&D). Previously, they consisted of 25 billion won for R&D and 25 billion won for raw material purchases and outsourced processing costs; however, following the revision, the total of 5.9 billion won has been allocated as follows: 700 million won for improved new drugs, 2.5 billion won for first-to-market generics, 800 million won for the shift to in-house production, and 1.9 billion won for long-acting injectables. The line items for raw material procurement and outsourced processing costs have been eliminated.

Notably, the R&D plan for improved new drugs has been significantly scaled back. Previously, the company planned to invest 10.9 billion won from the third quarter of 2026 through the fourth quarter of 2028 to develop combination drugs for hypertension and hyperlipidemia, combination drugs for neuropathic pain, and improved new eye drops; however, following the revision, the eye drop development plan has been excluded. The company plans to invest 700 million won in the development of combination drugs for hypertension and hyperlipidemia, as well as combination drugs for neuropathic pain.

The 5,650 won confirmed this time is the initial offering price; the final offering price will be recalculated on the third trading day prior to the subscription period for existing shareholders. The company plans to conduct the subscription for existing shareholders on September 10–11, the public offering subscription on September 15–16, and proceed with payment on September 18.