'Long-lasting Efficacy' G2G Bio Launches 10 Billion Won Funding Drive

Existing shareholders including CKD Changup Investment plan follow-up investment
Clinical trials centered on 'InnoLAMP' begin in earnest

[Asia Economy Reporter Kwangho Lee] G2G Bio, a developer of long-acting pharmaceuticals, is set to raise additional funding. It is expected to accelerate its initial public offering (IPO) by both advancing its proprietary platform technology and further expanding its business scale.

According to the investment banking (IB) industry on the 20th, G2G Bio is in talks with venture capitalists (VCs) to secure an investment of approximately 10 billion KRW. Existing shareholders, including CKD Startup Investment, a venture capital affiliated with Chong Kun Dang, have already decided to follow on with additional investments. Attention is focused on whether new financial investors (FIs), as well as existing shareholders, will participate in this round.

To date, G2G Bio has raised a total of 20.7 billion KRW in funding. After the seed round, it successfully completed an 8 billion KRW Series A in 2018 and secured 11.4 billion KRW through Series B in 2020. With this additional 10 billion KRW, the cumulative investment will exceed 30 billion KRW.

Major financial investors include Korea Investment Partners, Quad Asset Management, BNK Venture Investment, IBK Industrial Bank, Seoul Investment Partners, ARK Impact Asset Management, Empord Equity Partners, Daeduk Venture Partners, and Cognitive Investment.

Although Series C typically follows Series B, it appears that G2G Bio is pursuing a bridge round considering current market conditions. The pre-valuation is reported to be 60 billion KRW.

Founded in March 2017, G2G Bio is recognized as having top-tier domestic technology in the field of sustained-release microparticles (drug capsules) with high long-acting efficacy. Its main business area is the development of improved new drugs designed to release therapeutic substances over an extended period through microparticles made by mixing biodegradable polymers with therapeutic drugs.

The technology for manufacturing sustained-release microparticles involves encapsulating drugs in biodegradable polymers to form microparticles that gradually dissolve and are absorbed in the body. This process is complex and presents a high technical barrier.

G2G Bio utilizes its global sustained-release platform technology called ‘InnoLAMP.’ This technology focuses on extending drug efficacy from one week to several months by enabling biodegradable drug-containing microparticles to slowly degrade subcutaneously or intramuscularly within the body.

During the microparticle manufacturing process, an emulsion solvent evaporation method was employed. This ensured uniform particle size distribution, enhancing product efficacy and quality stability. The manufacturing technology that increases unit production volume of microparticles up to 20 times, along with aseptic liquid filling technology for microparticles, are also considered proprietary technologies of G2G Bio.

So far, the company has accelerated development of candidates including a one-month sustained-release dementia treatment, a one-month sustained-release diabetes treatment, a one-week sustained-release non-narcotic post-operative pain treatment, a six-month sustained-release animal sterilization agent, and dermal fillers.

Recently, it initiated Phase 1 clinical trials in Canada for ‘GB-5001,’ a one-month sustained-release dementia treatment. This is the first clinical study of a drug applying the InnoLAMP technology and is progressing smoothly. Additionally, G2G Bio has strengthened the competitiveness of GB-5001 by signing joint development and technology transfer agreements for an Alzheimer’s treatment ‘donepezil’ injection with Korea Pharma and Humedix.