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| Prestige Biologics CEO Yang Jae-young speaks during a press conference at the Conrad Seoul in Yeouido, Seoul, Friday. Courtesy of Prestige Biologics |
By Anna J. Park
Prestige Biologics, a Korea-headquartered contract development and manufacturing organization (CDMO) business, is set to debut on the tech-heavy KOSDAQ next month.
Founded in 2015, Prestige Biologics has focused on manufacturing and developing biologic drugs, particularly biosimilars ― biologic drugs whose patents have expired.
During a press conference Friday in Yeouido, the bio company said it plans to raise 63.9 billion won ($57.7 million) by offering 7.35 million in shares through an initial public offering (IPO).
The share's price band has been set between 8,700 won and 124,000 won, and the final offering price will be determined at the end of this month after conducting a two-day stock allocation demand survey of institutional investors on February 23 and 24. Mirae Asset Daewoo has been leading the IPO process as its main book runner and underwriter.
The firm's CEO said he hopes that the IPO will further boost the bio company's growth in the global biologics market.
"Prestige Biologics aims to grow into a global CDMO firm with competitive edges by developing innovative manufacturing platforms and service improvements," CEO Yang Jae-young said during the press conference.
The firm currently operates a CDMO manufacturing plant with a capacity of about 6,000 liters, located in Osong, North Chungcheong Province, which is about 110 kilometers away from Seoul. With a second smart plant in Osong expected to be completed by the end of 2022, the firm's entire capacity level is forecast to increase up to 104,000 liters.
The CDMO company maintains a strategic partnership with Singapore-based Prestige Biopharma. Both companies also have the same major shareholders: the founder and co-CEOs of Prestige Biopharma. Prestige Biopharma made its stock market debut in early February on the benchmark KOSPI market.
The world's biopharmacy market is expected to grow to around $505 billion by 2026, accounting for around 35 percent of the entire pharmaceutical industry. In particular, global CDMO businesses are expected to log an annual growth rate of 13.4 percent from 2019 to 2025.
