Jeil Pharmaceutical Subsidiary Raises 28 Billion KRW Through IPO

Onconic Therapeutics, Specialized in New Drug Development, Pursues Technology Special Listing
Jacubojung Launched Domestically on the 1st... Treatment for Acid-Induced Gastrointestinal Diseases
Prioritizing Investment of Raised Funds in Research and Development

Jeil Pharm's subsidiary Onconic Therapeutics has launched its listing on the KOSDAQ market just over four years after going public. Onconic Therapeutics plans to use the funds raised through its initial public offering (IPO) for research and development (R&D) and clinical trial expenses.

According to the Financial Supervisory Service's electronic disclosure system on the 21st, Onconic Therapeutics will issue 1.55 million new shares to attract investors. The expected public offering price range is 16,000 to 18,000 KRW per share, with the total offering size between 24.8 billion and 27.9 billion KRW. A demand forecast for institutional investors will be conducted from the 13th to the 19th of next month, after which the final public offering price will be determined. The estimated market capitalization is between 172.9 billion and 194.5 billion KRW.

Founded in 2020, Onconic Therapeutics is developing innovative new drugs in the fields of acid-induced gastrointestinal diseases and oncology. The company focuses on developing small molecule-based new drugs, which are relatively less expensive to develop and commercialize compared to biopharmaceuticals. The largest shareholder is Jeil Pharm, holding a 54.3% stake.

Acid-induced gastrointestinal diseases are the most common gastrointestinal disorders, with a global market size estimated to exceed 20 trillion KRW. Onconic Therapeutics has received new drug approval for 'Jacubojung,' a P-CAB mechanism drug for treating acid-induced gastrointestinal diseases.

NH Investment & Securities, the lead underwriter, selected JW Pharmaceutical, Hanmi Pharm, and HK Inno.N as comparable companies to assess Onconic Therapeutics' fair corporate value. Applying an average price-to-earnings ratio (PER) of 24.82 from these three companies, Onconic Therapeutics' corporate valuation was estimated at 275.6 billion KRW. The valuation applied an annual discount rate based on the projected performance for 2027, three years after the launch of Jacubojung.

Onconic Therapeutics recorded a net loss of 11.3 billion KRW this year but expects to turn profitable by 2026. The estimated net income for 2026 and 2027 is 6.7 billion KRW and 19.2 billion KRW, respectively. The company explained that sales of Jacubojung, launched domestically on the 1st, are expected to grow from 9.6 billion KRW this year to 57.7 billion KRW by 2027.

Onconic Therapeutics is conducting clinical trials for 'Nesuparip' (JPI-547), a dual-inhibitor targeted anticancer drug that simultaneously suppresses PARP and Tankyrase, which promote cancer cell growth. It is expected to be effective in treating ovarian and breast cancers. The drug has been designated as an orphan drug by both the Korean Ministry of Food and Drug Safety and the U.S. Food and Drug Administration (FDA). The company plans to secure clinical 1b phase data for pancreatic cancer next year and interim analysis data for endometrial cancer by 2026. The goal is to license the technology in the first quarter of 2027.

Kim Jon, CEO of Onconic Therapeutics, stated, "Onconic Therapeutics is the first domestic pharmaceutical and biotech company to successfully list through a technology special listing by developing Jacubojung and obtaining new drug approval," adding, "The funds raised through the listing will be used for subsequent pipelines."