Only Attacking Tumor Cells... The Company Chosen by Orion Breaks Through the Roof with a High Kick

Ligakem Bio Up 65% This Year... Market Cap 3.9 Trillion
Proving Antibody-Drug Conjugate (ADC) Technology Boosts Corporate Value
Orion Acquires 25.6% of Ligakem Bio Early This Year

Antibody-drug conjugate (ADC) developer LigandChem Bio has seen a significant rise in its stock price this year. With support from Orion, the company is smoothly progressing through clinical trials, proving the value of its new drug development pipeline.

According to the financial investment industry on the 7th, LigandChem Bio's stock price has risen 65% since the beginning of this year. Considering that the KOSDAQ index fell about 11% during the same period, the market-relative return reaches 76 percentage points. On the 4th, it recorded 107,600 KRW, setting a new all-time high. Its market capitalization has surpassed 3.9 trillion KRW.

ADC is a next-generation biopharmaceutical under development that attaches highly therapeutic drugs to antibodies that specifically bind to cancer cells, aiming to meet the unmet needs of existing anticancer treatments. Unlike conventional chemical anticancer agents, ADCs are expected to attack only tumor cells, reducing side effects while enhancing therapeutic effects, which has attracted investments from multinational pharmaceutical companies. It is a fiercely competitive field where many pharmaceutical companies and research institutes strive to secure next-generation technologies.

LigandChem Bio's stock price is rising with expectations of confirming important clinical trial results next year. To pioneer the ADC field, LigandChem Bio independently developed the ADC platform core technology 'ConjuALL.' Using candidate substances and clinical development drugs applying this core technology, the company is developing new drugs effective for various diseases.

LCB14, expected to be effective against breast and stomach cancers, has been licensed to Fosun Pharma in China. At the American Society of Clinical Oncology Annual Meeting (ASCO 2024), an abstract of the interim results of a Phase 2 clinical trial targeting locally advanced or metastatic stomach cancer was released. Most efficacy indicators were confirmed to be excellent. Lee Jisoo, a researcher at Daol Investment & Securities, said, "Among LigandChem Bio's pipeline, LCB14 is expected to be commercialized the fastest," adding, "We anticipate the announcement of Phase 3 clinical data in the first half of next year and a conditional approval application in China."

LCB84, licensed to Janssen, is expected to be effective in treating metastatic solid tumors. In December last year, LigandChem Bio received an upfront payment of 100 million USD from Janssen in the U.S. for the technology transfer of LCB84. Including milestone payments by stages, the contract size reaches up to 1.7 billion USD. Comparative clinical trials of LCB84 monotherapy and combination therapy with immuno-oncology drugs are underway for patients with advanced solid tumors. As clinical data from competing pipelines have been confirmed to be disappointing, expectations for LCB84 are growing. Kwon Haesoon, a researcher at Eugene Investment & Securities, analyzed, "Compared to competing pipelines, LCB84 shows higher anticancer effects across multiple cancer types while not raising significant concerns about side effects," and added, "Its commercialization value is expected to be substantial."

Kim Junyoung, a researcher at Meritz Securities, emphasized, "If Janssen exercises the option for independent development based on the Phase 1 clinical results of LCB84, LigandChem Bio will receive 260 billion KRW as a milestone," stressing, "The Phase 1 clinical results expected next year are crucial."

As LigandChem Bio's stock price rises, investment sentiment toward Orion is also improving. On January 15, Orion invested 548.5 billion KRW to acquire a 25.6% stake in LigandChem Bio. They participated in a third-party allotment capital increase to acquire new shares and purchased existing shares held by the founder and management. Right after the news of LigandChem Bio's acquisition was announced, Orion's stock price plunged. The stock, which had fallen to around 80,000 KRW in August, is recently attempting to recover to 100,000 KRW.