This article was posted on the ChosunBiz MoneyMove (MM) site at 4:04 p.m. on Sep. 30, 2025.
Adele, a biotech developing treatments for Alzheimer's dementia, saw its bid to go public fail at the first hurdle. The company had decided to seek a preliminary review from the Korea Exchange in the first half of next year aiming for a Kosdaq technical listing, but it was confirmed to have failed the technology evaluation.
According to the venture capital industry on the 30th, Adele recently received a "BBB" rating from both technology evaluation agencies. BBB is a "moderate level of technology affected by changes in market conditions," and Adele fell short of the minimum requirement of "A"·BBB for technical listing.
The technical listing system, introduced in 2005, allows companies to list on the Kosdaq market even if they do not meet financial performance requirements, provided their technology is recognized by specialized evaluation agencies designated by the Korea Exchange. As a result, the technology evaluation is considered the first gate for technical listings.
Adele reportedly did not score highly on the commercial viability of the technology itself. Its core pipeline, the dementia treatment ADEL-Y01, advanced beyond U.S. Food and Drug Administration (FDA) phase 1 approval to enter a multiple ascending dose (MAD) trial, but it has no technology transfer achievements.
Adele was founded in 2016 by Yun Seung-yong, a professor in the Department of Neurology at Asan Medical Center, aiming to develop treatments for dementia and other neurological disorders. In 2020, its fifth year, it signed a joint research agreement with Oscotec on ADEL-Y01 to accelerate clinical development, but it has not produced any technology transfer results.
Technology transfer has recently been regarded as a key indicator in biotech technology evaluations. It signals that global big pharma or major domestic drugmakers have recognized not only the therapeutic technology but also its commercial potential. Having at least minimal cash flow from technology royalty revenue is also an advantage.
Some analysts say Adele rushed its listing without technology transfer results because it was under pressure from an investment contract. In a new fundraising of 17 billion won last year to cover main clinical costs, Adele set a condition to obtain technology evaluation grades by this month.
The contract's core was a re-pricing that would lower the conversion price if Adele failed to receive at least the minimum technical listing grades of A and BBB respectively from two technology evaluation agencies by Sep. 30 this year. The conversion price was set at 161,114 won, 70% of the then per-share investment price.
With the failure to meet the technology evaluation grade, the re-pricing is expected to proceed. Investors will secure shares at a lower price, while founder Professor Yun and existing shareholders will bear dilution. At that time, Stonebridge Ventures and Yuanta Investment, among others, participated as investors.
Adele is understood to have decided to pursue global technology transfers and try again to list next year. However, a relaunch of listing is likely possible only after the second half of next year. If a company fails the technology evaluation, it can reapply six months later. The filing for review could be further delayed.