S.Korean biotech NKMax’s unit aims for US IPO

NKMax Co., a South Korean cancer drug maker, is in talks with local and foreign investors in a bid to list its California-based unit NKGen Biotech Inc. on the New York Stock Exchange.

The US subsidiary aims to go public through a merger with a special purpose acquisition company (SPAC) listed on the NYSE, according to industry sources on March 14.

NKMax declined to comment on details of the IPO plan. 

The Korean biotech is developing a cancer treatment using natural killer (NK) cell immunotherapy, in which NK cells detect and remove cancer cells, viruses and infected cells. NKMax rapidly reproduces high-purity NK cells through its patented immunotherapy.

Through the IPO, NKMax will attract the funds to expand the US unit’s clinical research facilities, which produce up to 3,000 drug doses per year — only one-third of the production capacity of its Korea-based facilities.

The US subsidiary received approval last year from the US Food and Drug Administration (FDA) to conduct the phase 1 trial and is now conducting research to treat solid tumors. 

The US unit will begin studies with NK cells derived from healthy participants, while also collaborating on research with Merck and Pfizer to prove the anticancer efficacy of the cells.

MORE K-BIO FIRMS SEEKING GLOBAL IPO

Other Korean biotechs are also eyeing IPOs overseas to attract investment, secure talent and build global networks.

Some are shifting to global IPOs because the domestic exchange sets the bar too high for the ventures, with strict requirements such as data sets of drug efficacy, technology transfers and other milestones.

Orum Therapeutics, a clinical-stage bio venture, is considering listing on the Nasdaq. The firm recently launched a clinical phase 1 study in the US with protein degraders targeting breast cancer treatment.

Han Bio, a cell therapy developer, signed a partnership with Vancouver, Canada-based investment firm Blueapple Asset Management Ltd. last month in a bid to start the process to debut on Canada’s TSX Venture Exchange. The biotech focuses on cancer drugs, cosmetics and hair loss treatment.

Peak Bio Co., which develops treatments for a rare genetic respiratory disease, last year became the first Korean bio venture to be listed on the Nasdaq.

Its parent company, pH Pharma, dropped a plan for a local IPO in 2020 and decided to seek a backdoor listing in the US through a merger of the subsidiary with US blank check company Ignyte Acquisition Corp. 

Write to Jae-Young Han at jyhan@hankyung.com
Jihyun Kim edited this article.