Recognized for Potential in Developing Raw Materials for Microbiome New Drugs and COVID-19 Diagnostic Kits
[Asia Economy Reporter Hyungsoo Park] Genofocus announced on the 21st that it will raise 10 billion KRW by issuing convertible bonds. K2 Investment Partners has decided to invest.
Genofocus is a "customized protein and microorganism development platform technology company" spun off from the Korea Research Institute of Bioscience and Biotechnology. It has secured ultra-fast screening technology based on microbial display technology and high-level protein overexpression technology using microorganisms. In addition, it is strengthening AI-based smart library manufacturing technology and microbial metabolism design technology to build core technologies in enzyme and microorganism development fields. The company has expanded its business areas to special enzymes and biohealthcare materials. It is also challenging the development of enzyme microbiome new drugs and vaccines.
Kim Sang-woo, Executive Director of K2 Investment Partners, who was in charge of investment screening, explained, "Genofocus has unique technological capabilities that can cross industrial fields from industrial enzymes to microbiome biopharmaceuticals and core raw materials for coronavirus diagnostic kits, based on highly scalable foundational technology."
He added, "It has mass production technology for core raw materials, enabling expansion into intermediate materials and finished products."
Furthermore, he evaluated, "The development of special enzymes for COVID-19 diagnostic kits, which are explosively growing and produced by only a few overseas companies, is in the final stages," and "there is a high possibility of supply to COVID-19 diagnostic kit manufacturers."
Genofocus is the parent company of GF Fermentec, a biohealthcare materials specialized company, and Biomlogic, a specialized company in enzyme and microbiome new drug development. GF Fermentec, acquired in 2017 at a corporate value of 10 billion KRW, turned profitable in 2019 after chronic deficits. Through continuous business expansion and Series A investments, it has already been recognized with a valuation exceeding 60 billion KRW. It plans to initiate an initial public offering (IPO) process within 1 to 2 years.
Biomlogic is a new drug development specialized company based on antioxidant enzymes and microorganisms independently developed by Genofocus, spun off in 2018. It aims to develop treatments for inflammatory bowel disease and wet age-related macular degeneration. It is expected to enter Phase 2 clinical trials between the end of next year and early 2022.
According to a global market report, as of 2017, the global industrial and special enzyme market was valued at 5.3 billion USD. With the continuous increase in demand for eco-friendly materials, rapid growth is expected. Based on the scalability of Genofocus technology, if the business area expands not only to enzymes as raw materials but also to biohealthcare materials and finished products using enzymes, the market size could grow to hundreds of billions to trillions of USD.
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