Hyundai Saryo Changes Signboard, 'Oregobomab' Clinical Trial Funding Initiative Underway

Name Change to CanariaBio on the 11th
Phase 2 Clinical Trial in Progress with GSK

[Asia Economy Reporter Minji Lee] Hyundai Feed is taking on the bio division of Canaria Bio and is set to raise funds for clinical trials of the new ovarian cancer treatment drug, Oregobomab. Since it recently entered Phase 2 clinical trials jointly with the UK-based GlaxoSmithKline (GSK), securing additional clinical funding is understood to be urgent.

On the 4th, Nahanik, CEO of Canaria Bio and Hyundai Feed, told Asia Economy, "From the second half of the year, Hyundai Feed and bio-related businesses including Oregobomab will be managed together," adding, "With the addition of the bio business, Hyundai Feed’s company name will be changed to ‘Canaria Bio’ on the 11th."

Hyundai Feed, which operates in feed manufacturing, recently announced through a public disclosure that it will acquire 'LSLC&C’s 1st issuance of unsecured private corporate bonds' worth 386 billion KRW. The contract completion date is set for the 7th, and once the payment is fully made, Hyundai Feed will actually receive the intellectual property (IP) related to Oregobomab held by ‘MHC&C’, a subsidiary of ‘LSLC&C’, which is a subsidiary of Canaria Bio. The company explained that since the asset transfer is done through corporate bonds rather than stock mergers, it avoids scrutiny under the backdoor listing review.

Accordingly, Canaria Bio, which is registered in the existing K-OTC market, will be renamed ‘Canaria Bio M’. Hyundai Feed (Canaria Bio), listed on the KOSDAQ market, will become a parent company of Canaria Bio M with a 77% stake. The company expects that although the bio IP will be transferred to Hyundai Feed, the registration of Canaria Bio M in the K-OTC market will not be canceled.

CEO Nahanik explained, "Since Canaria Bio M is registered in the K-OTC market as a seller of automotive carpets and interior/exterior materials, it does not meet the conditions for deregistration," adding, "The personnel of Canaria Bio M will not move to Canaria Bio, and the new drug clinical trials will be conducted in an outsourced manner." However, considering a governance restructuring in the second half of the year, the company is reviewing options such as issuing Canaria Bio shares to shareholders who invested through the existing K-OTC market.

In summary, Canaria Bio is expected to leverage its KOSDAQ listing advantage to raise funds for clinical trials through convertible bonds (CB) issuance or rights offerings. The global Phase 3 clinical trial of Oregobomab, currently underway for ovarian cancer patients, has surpassed half of its patient recruitment, accelerating the trial. The plan is to complete patient recruitment by the end of the year, announce interim results in 2023, and final results in 2024.

Since the Phase 2 clinical trial combining Oregobomab with the ovarian cancer treatment ‘PARP inhibitor’ sold by the UK multinational pharmaceutical company GSK will start next month for mutation patients, securing funds for clinical trials has become even more critical. The Phase 2 trial plans to recruit about 20 patients, with conservatively estimated clinical costs reaching 2 billion KRW.

CEO Nahanik stated, “This trial targets BRCA mutation and HRD-positive mutation patients, marking a significant entry into the mutation market that Oregobomab could not previously address,” adding, “If the Phase 3 trial of Oregobomab monotherapy succeeds, expected sales could reach 11 to 12 trillion KRW, and if expanded to the mutation market, it could increase up to 17 to 18 trillion KRW.”