[Edaily Reporter KIM SAE-MI ] Qurient Co., Ltd.(115180)is set to secure funding for research and development over the next three years through a 105.8 billion won rights offering. With large-scale cash outflows from new drug development continuing, attention is focused on whether the joint venture with Lonza will help alleviate the burden of raising additional funds.

Risk of Being Designated a “Monitored Stock” Next Year Persists Even if the 100 Billion Won Capital Increase Succeeds

According to the biotech industry on the 22nd, Qurient Co., Ltd. is currently pursuing a capital increase by issuing 7.1 million new shares through a shareholder allocation followed by a public offering of unsubscribed shares. The initial offering price, determined on the 16th, is 14,900 won per share, with an expected total proceeds of 105.8 billion won.

Qurient Co., Ltd. plans to allocate 66.7 billion won of the raised funds to research and development and 39.1 billion won to essential operating expenses. The funds will be disbursed over a three-year period from 2027 to 2029. Key investment targets include the dual-payload antibody-drug conjugate (ADC) “QP101,” the CDK7 inhibitor “Mokasiclip” (Q901), and the triple inhibitor “Adrixetinib” (Q702).

This rights offering is also directly linked to improving the company’s financial structure. Qurient Co., Ltd.’s consolidated revenue for the first half of this year was 3.9 billion won, while its operating loss stood at 20.5 billion won. Cash flow from operating activities was negative (-) 18.4 billion won, with cash outflows increasing by 3.7 billion won (24.9%) compared to the same period last year. Total capital also decreased from 39.2 billion won at the end of last year to 21.8 billion won at the end of June this year.

The risk of being designated as a “monitored stock” due to deteriorating financial soundness is also a concern. Qurient Co., Ltd. estimates that its loss from continuing operations before income tax expense will reach 42.5 billion won this year. The company expects that if it raises the full amount targeted through this rights offering, the capital injection will reduce the loss ratio to approximately 40%.

If the amount raised falls short of the target, the capital-boosting effect will diminish, potentially increasing the risk of being designated as a “monitored stock.” In other words, the success of this rights offering is a critical factor not only for securing research and development funds but also for mitigating the financial risks associated with maintaining its listing status.

The problem is that even if this rights offering is completed, it will not fundamentally resolve the company’s funding issues. Qurient Co., Ltd. plans to spend 105.8 billion won on R&D and operating expenses from 2027 to 2029. Due to the nature of new drug development, large sums are invested in clinical trials, while revenue from technology transfers is difficult to predict in terms of whether contracts will be finalized and when.

In particular, expenditures of 54.7 billion won are scheduled for next year alone. Analysts estimate that if no significant technology transfer revenue or similar inflows materialize next year, the ratio of loss from continuing operations before income tax (LCOBT) could reach approximately 96% in 2027. If losses persist without the joint venture with Lonza leading to actual contracts and cash inflows, the risks of future additional fundraising and shareholder value dilution could resurface.

Qurient Co., Ltd.: “Joint Venture with Lonza—First Contract Expected as Early as Year-End”

In this situation, the new revenue source Qurient Co., Ltd. is counting on is

the

dual-payload ADC

joint venture

with Lonza. The company explains that this agreement, announced on the 13th, differs in structure from typical technology exports, where technology is transferred to another company in exchange for an upfront payment.

Qurient Co., Ltd. will supply the CDK7 inhibitor, while Lonza will provide ADC component technologies such as linkers and exatecan. Under this model, in which a global pharmaceutical company combines the two drugs with an antibody it has developed in-house, Lonza will lead contract negotiations with clients, and the two companies will share the resulting revenue.

Yoo Chang-yeon, Vice President (CFO) of Qurient Co., Ltd., explained, “This agreement is structured as a business partnership with Lonza, not a technology transfer,” adding, “When Lonza signs a technology transfer agreement with a client, the two companies will share the resulting revenue.” Regarding the revenue-sharing ratio, he noted, “While we cannot disclose the exact ratio due to the terms of the agreement between the two companies, it can be viewed as a nearly equal partnership.”

Qurient Co., Ltd. has already signed Material Transfer Agreements (MTAs) with multiple global pharmaceutical companies and is currently conducting technology evaluations. An MTA is a stage in which a client applies the technology to its own antibodies to verify efficacy and other factors; it is distinct from an actual commercialization agreement.

Vice President Yoo stated, “We already have a substantial backlog,” adding, “The evaluation period ranges from 2 to 3 months for faster cases to about half a year for those that take longer.” He continued, “Contracts could start coming in as early as the end of this year, and I expect many more next year,” expressing optimism that “we’ll likely see one contract every two months or so.”

However, the MTA represents a technology evaluation phase, not the main technology transfer agreement. The actual contract size and revenue-sharing ratio have not been disclosed, and even if follow-up contracts are signed, the amount and timing of cash inflows to Qurient Co., Ltd. remain uncertain. Therefore, it is unclear to what extent any revenue from technology transfers will offset Qurient Co., Ltd.’s ongoing R&D expenditures.

Major Shareholder Donggu Bio: “No Plans to Exit Qurient Co., Ltd.… Long-Term Investment”

DongKoo Bio & Pharma Co., Ltd.(006620), the major shareholder, plans to subscribe for 50% of its allocated shares in this rights offering. This represents an increase from the initial 30% participation rate, and the company intends to sell the remaining 426,222 subscription rights. DongKoo Bio & Pharma Co., Ltd. believes that even if it subscribes to only 50% of the allocated shares, it will have no trouble maintaining its status as the largest shareholder.

An official from DongKoo Bio & Pharma Co., Ltd. stated, “The decision to increase the subscription rate from 30% to 50% of the allocated shares was made to provide support to Qurient Co., Ltd.,” adding, “Considering other business investments and liquidity, we determined there was no need to subscribe for the entire allocation.” Regarding the sale of the subscription rights, the official replied, “We determined that it is better to sell them and convert them into cash rather than simply letting the rights expire without exercising them.”

DongKoo Bio & Pharma Co., Ltd. maintains that it has no immediate plans to divest its stake in Qurient Co., Ltd. The official emphasized, “We invested based on Qurient’s pipeline and long-term business prospects,” adding, “We currently have no exit plans.”

Regarding additional financial support, the official stated, “It has not been discussed yet,” but added, “If approximately 100 billion won is raised through this rights offering, we believe Qurient Co., Ltd. will face no liquidity or funding issues in conducting its business for the time being.”