Listed on KOSDAQ at an IPO price of 15,300 KRW on the 23rd of last month
150% increase over the IPO price in 6 trading days
Individual investors' cumulative net purchase of 87.1 billion KRW... Evaluation profit rate of 28%
The stock price of Encell, a pharmaceutical contract development and manufacturing organization (CDMO) company that was listed on the KOSDAQ market on the 23rd of last month, is soaring. Recently, as buyer industries have gained attention in the domestic stock market, interest in newly listed bio companies appears to have increased.
According to the financial investment industry on the 2nd, Encell's stock price rose 149.7% compared to the public offering price of 15,300 KRW within just 6 trading days after listing. It closed at 38,200 KRW on the 30th of last month. During this period, individual investors recorded a cumulative net purchase of 87.1 billion KRW, driving the stock price up. The average purchase price per share was 29,830 KRW, resulting in an evaluated return rate of 28%.
Founded in 2018 by Professor Jang Jong-wook of Samsung Medical Center as a faculty startup, Encell is a CDMO company specializing in cell and gene therapy (CGT). CDMO refers to contract development and manufacturing that adds the concept of development to contract manufacturing (CMO), encompassing the optimization of production processes and commercialization, covering a series of new drug development stages. Encell supports its clients' rapid clinical entry through expertise in cell and gene therapy production and regulatory approval. It also provides solutions for mass production and regulatory changes. Together with its strategic partner Samsung Medical Center, Encell has established a cooperative system for cell and gene therapy development from new drug development to patient administration stages. Encell secured 33 out of a total of 57 domestic orders.
CDMO sales were evenly distributed across various new drugs in fields such as stem cells, immune cells, adeno-associated virus (AAV), and exosomes. Last year, Encell recorded sales of 10.5 billion KRW. This represents a 43% increase compared to 2022. Operating losses continued at 11.8 billion KRW.
Encell plans to use the 24.7 billion KRW raised through its initial public offering (IPO) to expand therapeutic production capacity and advance clinical trials of its developing new drug pipelines. It is developing treatments for rare diseases such as Charcot-Marie-Tooth disease (EN001-CMT), Duchenne muscular dystrophy (EN001-DMD), and sarcopenia (EN001-SP).
Encell is developing EN001, a next-generation mesenchymal stem cell therapy that overcomes the limitations of existing mesenchymal stem cell therapies. By employing early passage mesenchymal stem cell mass acquisition technology, it reduces production costs and shortens culture time by about half, thereby suppressing cell aging and enhancing efficacy.
Researcher Park Jong-sun of Eugene Investment & Securities explained, "Based on EN001, the world's first developed early passage mesenchymal stem cell therapy product, Encell is advancing new drug development targeting various muscular diseases."
The largest shareholder, CEO Jang Jong-wook, holds an 18.8% stake, and including special related parties, the shareholding ratio is 34.4%. The Samsung Life Public Welfare Foundation, a social welfare corporation, also holds a 4.2% stake.
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