Genome & Company awaits upcoming listing at KOSDAQ

Genome & Company CEO Pae Ji-soo speaks during an IR press conference held at the 63 Building in Yeouido, Thursday. / Courtesy of Genome & Company

By Anna J. Park

Ahead of its initial public offering (IPO) on the tech-heavy KOSDAQ later this year, Genome & Company laid out the biotech firm's various business models and future visions centering on its microbiome-based immuno-oncology expertise at an investor relations event Thursday.

Founded in 2015, the bio company discovers and develops innovative therapeutics in immuno-oncology, mainly utilizing microbiomes. The company aims for its microbiome therapeutics to be used in cancer, diabetes, atopic dermatitis and autism treatments. The firm also plans to develop other business models using microbes and probiotics, advancing into the cosmetics and dietary supplements markets.

Top microbiome biotech company in Asia

What distinguishes the firm is that it has already established partnerships with big global pharma companies such as Merck, Pfizer and LG Chem based on its strong R&D capabilities, with various phases of clinical trials currently underway with them.

Genome & Company is Asia's first and only microbiome R&D firm that has signed clinical trial deals with global big pharma companies. While there are around 500 biotech companies that work in the microbiome field, only 25 companies have undertaken clinical trials.

The biotech company is also collaborating with major hospitals around the world, including MD Anderson Cancer Center, Yale New Haven Health and Seoul National University Hospital.

Genome & Company also acquired U.S.-based biotech firm Scioto Biosciences in August this year. The two firms plan to closely cooperate on developing a microbiome treatment for autism.

Listing transfer from KONEX to KOSDAQ

Based on the technological advances in the bio sector, the firm has qualified for a special fast track to be listed on the KOSDAQ, under which a corporate evaluation period takes only 30 business days, instead of the usual 45.

The fast track is available for quality companies whose shares have already been traded on the nation's KONEX (Korea New Exchange) market ― a securities exchange for small- and medium-sized venture companies prior to their KOSDAQ listing. The local bio enterprise was first listed on the KONEX market in December 2018, and has successfully achieved its market growth potential, attracting investors from both in and outside the country.

Korea Investment & Securities is the firm's main underwriter for the IPO transfer process to the KOSDAQ market. Retail investors can register themselves for stock allotments at securities firms on Dec. 14 and 15.

“Because of the successful trading record on the KONEX during the past year, the company's KOSDAQ IPO process has been much smoother,” CEO Pae Ji-soo said during a IR press conference Thursday.

“Through the listing transfer to KOSDAQ, the company aims to expand its global pipelines and grow into a world-class biopharma healthcare business group with a strong biotechnological edge,” the M.D.-turned-CEO added.

The bio company's share price band has been set between 36,000 won ($32.8) and 40,000 won, and 72 billion won is expected to be raised through the offering. The company said it will use the raised capital for R&D, equipment investment and operating costs.

With the listing on the KOSDAQ, the company's market cap is expected to be around 475 billion won or 527 billion won, depending on the listing day's stock price.

Around 60 percent of the firm's shares will be bound under lock-up periods, ranging from one month to two-and-half years.