Aju IB Investment Reports 10.8 Billion KRW Operating Profit in Q3 Cumulative Driven by US Portfolio Growth

Bio Stock Rise Plays Key Role in Earnings Defense
Growth Effects of Biotech Firms Like Ascellex and Chimera Therapeutics
Additional Growth Expected Through Domestic Portfolio Listings in Q4

AJU IB Investment announced on the 14th through an electronic disclosure that it achieved a cumulative operating profit of 10.8 billion KRW on a consolidated basis for the third quarter of 2023. Despite the stagnation of the KOSDAQ, a major recovery market centered on secondary batteries, bio, semiconductors, and materials, parts, and equipment (SoBuJang), due to high interest rates and a weak Korean won, the U.S. investment portfolio played a key role in defending performance.

According to AJU IB Investment, the biggest contributor to the performance was the stock price increase of biotech listed companies invested in by its U.S. subsidiary, SolarStar Ventures. In particular, Arcellx, which develops cancer cell therapies, saw its stock price rise by more than 50% in the third quarter due to innovative treatment development and positive clinical trial results. The stock price rose from $55 at the end of June to $84 at the end of September and is currently approaching $100, marking an all-time high. Kymera Therapeutics, a biopharmaceutical company specializing in targeted protein degradation, also showed performance with about a 55% increase from $30 at the end of June to $47 at the end of September.

AJU IB Investment faced market concerns about performance due to the delayed listing of its flagship portfolio 'Yanolja' and the stagnation of KOSDAQ, but overcame these difficulties with a strategy of entering the U.S. market since 2013 to balance domestic and overseas investment portfolios. SolarStar Ventures' Silicon Valley branch aims to incorporate this year, which is expected to accelerate overseas investment expansion in the future.

AJU IB Investment expects that the performance of its domestic portfolio in the fourth quarter will drive a recovery in earnings through the listings of Dotmill, a specialized immersive media company, and Onconic Therapeutics, a subsidiary of Jeil Pharmaceutical. A representative of AJU IB Investment said, "Even amid increasing volatility in the domestic financial market, we have secured competitiveness through an overseas investment expansion strategy since 2013," adding, "Based on global pharmaceutical investment experience such as the Nasdaq listing achievement of SolarStar Ventures' Boston branch, we will continue to drive growth momentum through continuous overseas investment expansion."