Early Technology Transfer and Relay-Type Co-Development Model
Operating Seven Pipelines... Pursuing Second-Round Clinical Deals
KOSDAQ Listing Set for Next Month; Target Offering Price: 16,000?20,000 Won
Kanaph Therapeutics, a company specializing in new drug development based on the human genome, is accelerating its global technology transfer efforts with its upcoming listing on KOSDAQ. The company aims to reduce development risks and achieve profitability by 2028 through its “relay-type” business model, which involves both early-stage technology transfer and collaborative development.
Byungchul Lee, CEO of Kanaph Therapeutics, stated at a corporate briefing held on the 27th at Conrad Seoul in Yeouido, “We will establish a structure that enables us to initiate at least one new clinical trial and achieve at least one technology transfer or co-development outcome each year. With this listing as a catalyst, we will further enhance the value of our clinical-stage pipeline and accelerate the expansion of new pipelines, ultimately positioning ourselves as a global leader in innovative drug development.”
Lee Byungchol, CEO of Kanaph Therapeutics, is making a presentation at a corporate briefing held at Conrad Yeouido, Seoul on the 27th. Photo by Sungmin Lee
Founded in 2019, Kanaph Therapeutics identifies promising targets with strong disease associations by analyzing large-scale human genomic data using its proprietary disease signature discovery system. The company’s objective is to build a sustainable new drug development system by establishing a pipeline that applies the optimal modality (therapeutic approach) to each target.
The company operates a relay-type business model, in which it transfers technology to domestic pharmaceutical companies at the non-clinical stage and then conducts early clinical trials either independently or in partnership. Based on the clinical data generated, Kanaph Therapeutics then seeks to transfer the technology again to global pharmaceutical companies. This approach reduces development risks, increases capital efficiency, and establishes a virtuous cycle by reinvesting technology transfer revenue into research and development.
CEO Lee commented, “Many companies perform genomic analysis, but few have established it as a target discovery system. Our team comprises professionals with extensive drug development experience in the industry, enabling us to develop capabilities across various modalities.” He added, “Reports indicate that the clinical success rate of targets based on human genomics is two to three times higher than that of targets not based on such data.”
Kanaph Therapeutics is currently operating a total of seven pipelines: two bispecific antibodies, three small molecule compounds, and two antibody-drug conjugates (ADCs). The company has entered into joint research and development as well as technology transfer agreements with major domestic pharmaceutical firms such as Lotte Biologics, Oscotec, Dong-A ST, and Yuhan Corporation. KNP-502 and KNP-504, which were transferred with 100% rights, are currently being prepared for clinical entry by Oscotec and Yuhan Corporation, respectively. The KNP-101 and KNP-701 projects are being prepared for clinical entry under a 50:50 co-development model with partners. KNP-503 and KNP-301 are targeted for technology transfer this year and next year, respectively.
In particular, regarding the age-related macular degeneration treatment KNP-301, CEO Lee explained, “This is a bispecific antibody targeting both wet AMD and geographic atrophy, addressing a global area of high unmet need. We are actively pursuing global technology transfer starting from the preclinical stage, with a goal set for next year.”
Byungchul Lee, CEO of Kanaph Therapeutics, is making a presentation at a corporate briefing held on the 27th at Conrad Yeouido, Seoul. Kanaph Therapeutics
Kanaph Therapeutics attributes its “stability” to the diversity of modalities in its pipeline. Chief Financial Officer and Vice President Changwon Park stated, “From the very beginning, we believed that it was essential to pursue a range of projects to ensure sustainable company operations. The success rate from early-stage drug discovery to approval is less than 5%, so focusing on just one project did not seem wise.”
The company projects that it will turn profitable by 2028. CFO Park said, “We believe our business model is close to being fully realized and expect to reach breakeven in 2028.”
Meanwhile, Kanaph Therapeutics is offering 2 million new shares through this IPO. The proposed offering price ranges from 16,000 won to 20,000 won per share, with the total amount expected to be between 32 billion and 40 billion won. The funds raised through the listing will be allocated to clinical preparation and initiation for co-developed pipelines, expansion of new pipelines, strengthening R&D capabilities, and working capital. The general subscription will take place on the 5th and 6th of next month.
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