New Listing on KOSDAQ Market... IPO Price 29,000 KRW
Exclusive Distribution Agreement with Medtronic, the World's No.1 Medical Device Company
World's First Rapidly Degradable Arthritis Pain Embolization Treatment Agent
Nextbiomedical, an innovative therapeutic material developer, is trading below its IPO price on its first day of listing.
As of 10:45 AM on the 20th, the stock is trading at 27,800 KRW, down 4.14% from the IPO price of 29,000 KRW.
The stock opened at 27,000 KRW and fell to as low as 25,900 KRW. The trading volume has exceeded 5.4 million shares, surpassing the available float of 3.56 million shares.
Nextbiomedical is an innovative bio-solution company developing therapeutic materials based on polymer and drug delivery system technologies. It develops products reflecting the needs of medical sites. Key products include ▲endoscopic hemostatic agent (Nexpowder) ▲vascular embolization microparticles (Nexsphere™) ▲arthritis pain embolization therapeutic agent (Nexsphere™-F). The company has been recognized for its technological excellence and innovation through certifications from the Korean Ministry of Food and Drug Safety, European CE, and U.S. FDA, and has established a close business partnership with Medtronic, the world's largest medical device company based in the U.S. Based on last year's performance, sales are expected to grow at an average annual rate of 155% over the next three years.
Jung Donghee, a researcher at Samsung Securities, explained, "From 2020 to 2023, sales grew at an average annual rate of 104," adding, "With exports accounting for 88%, the company has global competitiveness." He continued, "Sales in the first half of this year reached 5.12 billion KRW, already exceeding last year's sales," and noted, "The valuation of Nexsphere-F was not reflected in the IPO price," adding, "Compared to competing products with non-degradable microparticles, Nexsphere-F decomposes within 2 to 8 hours in the body, reducing the risk of normal vascular necrosis side effects."
Nexsphere-F, the world's first fast-degradable arthritis pain embolization therapeutic agent, is emerging as a 'game changer.' It has obtained Korean and European CE-MDD certifications. Post-market clinical trials are underway in Korea for new medical technology application. In Europe, multiple dealership and distribution rights contracts have been signed, with post-market clinical trials about to begin. Recently, the company submitted an Investigational Device Exemption (IDE) to the U.S. FDA and plans to enter the U.S. market through clinical trials. This is expected to accelerate entry and market capture in the approximately 4 trillion KRW musculoskeletal embolization market.
Nextbiomedical CEO Donhaeng Lee said, "Based on rapid product commercialization experience and abundant clinical evidence, we will lead the creation and capture of new overseas markets by registering all products as global standard therapeutic materials." He added, "Through the KOSDAQ listing, we will successfully complete ongoing clinical trials and enter the U.S. market."
Seonyeong Park, a researcher at Mirae Asset Securities, explained, "Regarding the flagship product Nexpowder, a five-year revenue-sharing global distribution rights contract was signed with Medtronic for countries excluding Korea, China, and Japan in 2020," adding, "The contract can be extended every three years." She further explained, "Under this contract, Nextbiomedical manufactures finished products and supplies them to Medtronic, which then distributes them. If the local selling price exceeds a certain threshold, the profit difference is shared."
Medtronic is currently the world's number one medical device company with a market capitalization exceeding 100 billion USD and annual sales of 32.4 billion USD last year. It sells products in more than 150 countries and holds market dominance and competitiveness globally, not only in the U.S.
Researcher Park emphasized, "Despite being the latest entrant among the three powder-type endoscopic hemostatic agents launched in the market, it achieved a 17% penetration rate in the U.S. market last October, securing market share rapidly within eight months of launch." She added, "Through strategic partnership with Medtronic, expansion into South America, the Middle East, Africa, and Asia markets beyond the U.S. and Europe is underway."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
