Orum Therapeutics, a developer of antibody–degrader conjugates (DAC) known as the "next antibody-drug conjugate (ADC)," moved to raise additional funding even while holding ample cash. Observers said the move is a strategic choice aimed at expanding the pipeline and bringing in technology, rather than simply securing operating funds.
According to Orum Therapeutics on the 23rd, the company raised 145 billion won in convertible preferred shares (CPS) on the 18th. CPS, like regular preferred shares, secures investment stability but can be converted into common stock if the value of the corporations rises.
KB Investment led the round, with follow-on investments from existing backers including IMM Investment, Woori Venture Partners, and Starset Investment. New investors included Weiss Asset Management, a global asset manager based in Boston, as well as Korea Investment Partners, DSC Investment, Company K Partners, Aion Investment, and Daily Partners.
What stands out is Orum Therapeutics' current financial position. The company holds about 150 billion won in cash and cash equivalents. It also expects milestone revenue from previously signed licensing deals. Still, industry watchers said the additional capital increase suggests the company has entered a full-fledged pipeline expansion phase.
Orum Therapeutics, a DAC-focused corporations, was founded in Daejeon in 2016 and went public in Feb. this year. In 2019, it established a research lab in Boston and has operated a dual-center research system. Antibody research and development is conducted at its Daejeon headquarters, while ADC and chemistry research is done at the Boston lab. Clinical trials are also carried out in the United States.
DAC is a technology that combines ADC with targeted protein degradation (TPD), linking TPD to an antibody instead of a cytotoxic drug to remove only specific proteins inside cancer cells. If ADC is a "guided missile" that attacks the entire cancer cell, DAC is closer to selectively removing only the key proteins necessary for cancer cell survival.
Conventional ADCs have strong efficacy, but they have been criticized for resistance or toxicity due to the limitation of precisely removing only specific proteins.
TPD, on the other hand, has the advantage of degrading disease-causing proteins, but its small molecules can spread systemically and affect normal tissues. DAC aims to overcome the weaknesses of both technologies by using antibodies to deliver TPD only to cancer cells.
Orum Therapeutics has already achieved several major licensing deals. In 2023, it out-licensed a candidate therapy for acute myeloid leukemia to Bristol Myers Squibb (BMS) in the United States in a deal worth about 244.2 billion won. It received about 135 billion won as an upfront payment at the time, and additional milestone revenue is expected within the next one to two years if clinical development proceeds smoothly. In 2026, it is also scheduled to receive 40.3 billion won upon completion of phase 1.
Last year, it signed a large contract with Vertex Pharmaceuticals in the United States for its TPD platform technology. The total deal value is up to 1.3 trillion won, of which about 418 billion won has already been secured. An additional milestone of about 30 billion won is scheduled, depending on the first candidate entering clinical trials in 2026 and the development of a second candidate. Vertex plans to use the technology to develop a conditioning agent candidate that prepares the bone marrow microenvironment.
Orum Therapeutics is currently developing the acute myeloid leukemia candidate "ORM-1153" and the small cell lung cancer candidate "ORM-1023." ORM-1153 is a DAC that degrades GSPT1, a protein essential for cell survival. The company plans to complete preclinical studies on both candidates next year and pursue licensing deals thereafter.
The company said it plans to use the investment to accelerate development of its existing candidates, including these key assets, while advancing the DAC platform with new payloads beyond GSPT1. Based on payload design that considers selectivity and efficacy, it intends to expand not only research and development (R&D) but also its operating infrastructure.
In the industry, some interpret the capital raise, despite ample funds on hand, as groundwork for potential external technology in-licensing or securing additional pipeline assets.
An official at one of the investors that joined this round said, "As DAC technology has moved beyond initial validation and entered a full-fledged expansion phase, this investment is meant to broaden strategic options going forward."
In fact, Orum Therapeutics has publicly mentioned the possibility of in-licensing. CEO Lee Sung-joo has said the company would bring in core technologies such as antibodies or payloads from outside to broaden its pipeline. The move is seen as preemptively securing funds while holding ample cash to increase financial flexibility in licensing or in-licensing negotiations.
There are variables, however. In Apr., the phase 1 trial of the DAC candidate "ORM-5029" in breast cancer was voluntarily withdrawn after one patient exhibited an adverse event. The company said it currently has no plans to resume the trial. How the issue unfolds is seen as a factor that could affect the company's technological credibility and pipeline value going forward.