"First-generation venture" entrepreneur Lee Ki-hyung, chair of Gradiant, is accelerating a pivot in biotech strategy. The company is shifting its weight from new drug development to biotech services such as Organoid-based contract research (CRO) and in vitro diagnostics.
With losses continuing for years, assessments say the company is restructuring around businesses that can generate revenue relatively quickly, moving away from high-risk, long-term research and development (R&D) investments.
◇ "Invested 16.5 billion won from the sale of Yanolja stake" new drug subsidiary to be liquidated… "Losses fully reflected"
According to the industry on the 20th, Gradiant is currently proceeding with administrative procedures to liquidate its new drug development subsidiary, Therapex Co. The goal is to complete it within the year.
Since its 2020 founding, Therapex Co. has pursued new drug development centered on treatments for Non-small cell lung cancer (NSCLC), but it failed to secure visible clinical results. In Aug. last year, it succeeded in the technology transfer of the preclinical-stage candidate "TRX-211," but in Nov. the same year it disclosed the discontinuation of its core pipeline "TRX-221." The company cited strategic inefficiency as the reason for the halt.
The organization then shrank quickly. Chief Executive Lee Gu, a new drug development expert formerly with LG Life Sciences, also recently left the company, according to reports. The company said, "Since the clinical halt last year, most research staff reductions at Therapex Co. have been completed," adding, "Some personnel moved to Organoid subsidiary Gradiant Bioconvergence (GBCC)."
Regarding the remaining candidates, it said, "We are reviewing a plan to transfer them to GBCC after accounting valuation," and added, "We plan to manage them with a focus on the potential for technology transfer rather than further development."
Therapex Co.'s revenue last year was 1 billion won, about 0.03% of Gradiant's 3.0615 trillion won in consolidation revenue. Net loss came to 9.254 billion won.
A company official said, "Of the roughly 200 billion to 300 billion won secured by selling the e-commerce division to Yanolja, 16.5 billion won was invested in Therapex Co."
Gradiant traces its roots to Interpark, which launched in 1996 as Korea's first internet shopping mall. Lee started the company as an in-house venture at Dacom, listed it on KOSDAQ in 1999, and in 2006 shifted to a holding company structure through a spin-off of business units.
It then expanded its scale around B2B distribution by acquiring iMarketKorea, a Samsung Group MRO (maintenance, repair and operations) affiliate, and Anyon Care, a pharmaceutical distributor affiliated with Yonsei Medical Center. It entered the biotech business in 2020 by establishing Interpark Bioconvergence (IBC).
In 2022, after selling 70% equity in its e-commerce divisions—travel, performance, shopping, and books—to Yanolja, Interpark nurtured Therapex Co. and the Organoid corporations Gradiant Bioconvergence (GBCC) with IBC as the core. The corporate name was changed in 2022.
◇ Focus on Organoid CRO and in vitro diagnostics… accelerating "Bio 2.0" centered on commercialization
GBCC is concentrating its capabilities on the CRO business. It plans to use its patient-derived Organoid (PDO) library of about 1,000 types to discover biomarkers and evaluate efficacy in the preclinical stage.
A company official explained, "We considered AI-driven new drug development using genomic analysis data, but given the expense and time burden, we are now adjusting our strategy to center on the CRO business."
This strategy has been taking concrete shape since last year, when Nam In-bong, Gradiant's CEO, also assumed the role of GBCC's CEO. In Oct. last year, Gradiant also decided to provide 4 billion won in lending to GBCC.
A company official said, "GBCC is in the process of advancing its CRO business," adding, "Because the Organoid market is changing rapidly, we decided to support funding through lending rather than a capital increase until detailed business plans are finalized."
The official added, "As business planning is in its final stage, we plan to recoup the funds through a paid-in capital increase going forward."
According to Fortune Business Insights, the North American CRO services market is expected to grow to $175.46 billion (about 258 trillion won) by 2032. GBCC's revenue last year was about 270 million won, and its net loss was 8.991 billion won.
Gradiant's move last year to make in vitro diagnostic device corporations Enbifostech a subsidiary is seen in a similar light. Enbifostech has liquid biopsy technology that uses atomic force microscopy (AFM). Alongside its Organoid-based CRO business, it is categorized as a business with relatively high commercialization potential.
A company official said, "We are validating the commercialization potential of testing services through a U.S. CLIA Lab," adding, "We expect to secure research data as early as the end of this year or early next year." Depending on the results, it plans to review the schedule for filing for FDA approval.
The industry is watching to see whether Gradiant can return to profitability through restructuring. Gradiant posted an operating loss of 29.5 billion won last year on a consolidation basis. Losses widened due to the liquidation of Therapex Co.
Gradiant's main revenue source at present is iMarketKorea. On a consolidation basis last year, iMarketKorea accounted for 1.9221 trillion won in revenue, or 61.71% of the total. However, that institutional sector's operating result recorded a loss of 7.945 billion won last year.