Kanaph Therapeutics, an antibody-drug conjugate (ADC) immuno-oncology developer set to list on KOSDAQ this month, is drawing attention in the market on the back of strategic investments by major domestic pharmaceutical and biotech corporations. These corporations are going beyond simple equity participation to continue partnerships with Kanaph Therapeutics through various forms such as technology transfers, joint research and development, and manufacturing cooperation.
According to the industry on the 9th, major domestic pharmaceutical and biotech corporations such as GC Biopharma, Dong-A Socio Group, and Lotte Biologics participated as strategic investors in Kanaph Therapeutics. In the retail public offering subscription conducted on the 5th–6th, Kanaph Therapeutics collected about 9.5 trillion won in deposits and is set to list on KOSDAQ on the 16th.
According to the securities registration statement the company filed on the 26th of last month, major strategic investors such as GC Biopharma (5.49%), Dong-A Socio Group Chairman Kang Jung-seok (3.57%), and Lotte Biologics (0.5%) agreed to a 36-month lockup, the same as founder and CEO Lee Byung-chul.
A lockup is a mechanism that restricts investors from selling their equity for a certain period. Given that the strategic investors set a lockup period equal to that of the founder, the emphasis is on the potential for long-term cooperation rather than short-term gains.
CEO Lee Byung-chul's personal equity stands at 12.11%, which is relatively low. However, through a joint exercise of voting rights agreement, the friendly equity held by the largest shareholder side, including Lee and related parties, is expected to be formed at 26.72% based on post-IPO.
Founded in Feb. 2019, Kanaph Therapeutics is an innovative new drug development corporations based on the human genome and has drawn attention in the biotech initial public offering (IPO) market by signing multiple technology transfer deals on the strength of its antibody-cytokine fusion protein platform (TMEkine).
Founder and CEO Lee Byung-chul led ADC development as a senior researcher at Genentech, a subsidiary of Swiss Roche. Lee later led the discovery of human genome-based drug targets at 23andMe, a global genome analysis corporations.
On the strength of this expertise, Kanaph Therapeutics has built diverse business areas including bispecific antibodies, small-molecule drugs, and ADC platforms. It has signed a total of five technology transfer and joint development contracts with major domestic pharmaceutical companies such as Yuhan, Dong-A ST, GC Biopharma, Oscotec, and Lotte Biologics. The cumulative value of technology transfer contracts amounts to about 774.8 billion won.
Some of these corporations are also participating as strategic investors, expanding their partnerships. Their investments began in research and development. With GC Biopharma, Kanaph transferred the bispecific antibody-based ADC therapy "KNP-701," which simultaneously targets EGFR and cMET, proteins involved in lung cancer cell growth, last year and is conducting joint development.
With Lotte Biologics, Kanaph has been building an ADC platform through joint research and development since 2023. Kanaph Therapeutics applies it to new drug development, while Lotte Biologics applies it to its contract development and manufacturing organization (CDMO) business.
The two companies aim to provide a one-stop service covering ADC development, manufacturing, clinical trials, and commercial antibody production, centered on the jointly developed linker technology-based ADC platform "SoluFlex Link." Based on this, Lotte Biologics is also building an "ADC toolbox" service that can selectively utilize various technologies according to customer needs.
Dong-A ST, the new drug development subsidiary of Dong-A Socio Group, is also continuing its partnership. In 2022, Dong-A ST signed a technology transfer agreement with Kanaph Therapeutics for the bispecific antibody-based immuno-oncology therapy "KNP-101" and is jointly developing it.
In addition, in 2024 Kanaph Therapeutics, together with Cyrus Therapeutics, transferred to Yuhan the SOS1 inhibitor solid tumor therapy "KNP-504" in a deal worth up to 208 billion won. Yuhan, in charge of development, plans to enter a phase 1 clinical trial within the year.
Earlier, the drug-resistant anticancer candidate "KNP-502," which was transferred to Oscotec in 2022, is expected to begin dosing patients in a phase 1 trial in the United States at the end of this year.
Through pipeline-specific technology transfers, Kanaph Therapeutics has set a goal of achieving 24.4 billion won in operating profit in 2028. While cooperation has so far been centered on domestic corporations, it plans to pursue global technology transfers starting next year.
Recently, it signed a material transfer agreement (MTA) with a Chinese biotech and is verifying data under a confidentiality disclosure agreement (CDA) with a U.S. biotech. However, whether definitive agreements will be signed may vary depending on clinical data and the results of negotiations.