IMBDX Eases Overhang Concerns and Recovers IPO Price

April 3rd IPO Price Set at 13,000 KRW for KOSDAQ Market Listing
Pre-Listing VC Investment Shares Locked for 1-3 Months Released
Lunit Shows Similar Rebound Pattern After 3 Months of Listing

IMBDX's stock price is rebounding as concerns over potential sell-off volume (overhang) ease. After listing on the KOSDAQ market in April this year, the stock price declined for three months, falling below the offering price. Three months after the listing, the lock-up period on venture capital (VC) holdings invested before the initial public offering (IPO) was lifted. As the overhang volume that had been weighing on the stock price decreased, growth expectations for IMBDX are influencing the stock price.

According to the financial investment industry on the 26th, IMBDX's stock price rose 88% over 11 trading days since the 11th. Individual investors led the price increase with a cumulative net purchase of 13.5 billion KRW.

IMBDX is a liquid biopsy platform company. Liquid biopsy refers to a method of detecting circulating tumor DNA and diagnosing cancer by using cell-free DNA floating in bodily fluids such as blood, urine, pleural effusion, and cerebrospinal fluid. CEO Kim Tae-yu is regarded as the top authority in oncology in Korea, having served as the director of the Cancer Hospital and the Precision Medicine Center at Seoul National University Hospital. The company was listed on the KOSDAQ market on April 3rd with an offering price of 13,000 KRW. On the first day of listing, the stock price rose to 40,550 KRW, but as VCs began to realize profits, the price fell to as low as 8,430 KRW during trading on the 10th.

After hitting the lowest price since listing, IMBDX has begun a full-fledged rebound. Expectations are growing for 'CancerFind,' launched in November last year. Researcher Heo Seon-jae of SK Securities said, "CancerFind is a multi-cancer early detection platform that can simultaneously test for eight types of cancers including colorectal, stomach, liver, pancreas, lung, breast, ovary, and prostate through a single blood test," adding, "it has secured sufficient reliability in technology through clinical results, publications, registration in the national cancer conquest project, and approval from the Korea Disease Control and Prevention Agency."

As of the first quarter of this year, CancerFind has been commercialized in 10 major tertiary hospitals in Korea. IMBDX plans to expand the types of cancers detected by CancerFind from 8 to 20 this year. The company also plans to expand overseas to Europe, Japan, Southeast Asia, and the Middle East.

According to market research firm Grand View Research, the global liquid biopsy market size is expected to grow from 3.6 billion USD in 2020 to 18.3 billion USD by 2032, with an average annual growth rate of 15.9%. As major US diagnostic companies enter the liquid biopsy market, the growth rate is expected to accelerate further. Leading companies such as Grail and Exact Sciences have been recognized with corporate values exceeding 10 trillion KRW.

Researcher Oh Byung-yong of Hanyang Securities analyzed, "Although most adults undergo regular health checkups, it is difficult to detect pancreatic, liver, and lung cancers early with general examinations alone," adding, "there is a significant unmet demand for simple early cancer detection."

In Korea, 250,000 cancer patients are diagnosed annually, and about 30% of them miss the optimal treatment period. IMBDX can detect the presence of eight types of cancer early with approximately 10 mL of blood. Early detection of cancer increases the cure rate and reduces treatment costs.

There is also an evaluation that IMBDX's stock price trend is similar to that of Lunit, which was listed in July 2022 and began to rebound from October. Lunit started rising as concerns over overhang eased and expectations for new diagnostic methods grew. Liquid biopsy is expected to increase its market share in early cancer screening by emphasizing convenience and accuracy. Researcher Kim Chung-hyun of Mirae Asset Securities explained, "IMBDX is the only company in Korea that has commercialized products covering the entire cancer occurrence cycle from early cancer detection to precision medicine," adding, "CancerFind enables prediction of the cancer occurrence site."