Nanomedicine corporations Inventera will seek a KOSDAQ special technology listing in April. It plans to enter the diagnostic drug market with a first-of-its-kind iron (Fe)-based nano magnetic resonance imaging (MRI) contrast agent and later expand into therapeutics. However, as an early-stage biotech with no revenue yet, some in the market say opinions may diverge on whether its valuation is appropriate.
Shin Tae-hyun, CEO of Inventera, said at an initial public offering (IPO) briefing held on the 16th at the CCMM Building in Yeouido, Seoul, that "development of a nano MRI contrast agent using iron instead of gadolinium is proceeding smoothly," and added, "We will pioneer a new market by targeting diseases with a diagnostic gap."
Founded in 2018, Inventera is a biotech corporations developing diagnostic and therapeutic drugs based on its nanomedicine platform Invinity. Shin earned a bachelor's degree in chemistry from Yonsei University and a doctorate from the same graduate school. Shin founded the company on the strength of research results and patented technologies accumulated while serving as a postdoctoral researcher at the Yonsei University Industry-Academic Cooperation Foundation and a research assistant professor at the Yonsei University Institute for Radiological Imaging Science.
Nanomedicines are regarded as next-generation drugs that, by using structures sized from a few to several tens of nanometers, can enable early diagnosis and precise treatment of diseases that were difficult with existing technologies.
The company's core pipeline is a nano MRI contrast agent. Contrast agents are drugs that help make lesions and blood vessels more distinct in imaging tests such as MRI or CT. A key feature is that it is developed without using gadolinium, the main component of conventional MRI contrast agents, and instead is based on biocompatible iron (Fe). Gadolinium, the commonly used contrast agent component today, is a heavy-metal rare earth, posing risks of side effects such as kidney damage and allergies.
INV-002, a nano MRI contrast agent for diagnosing musculoskeletal disorders, is about 90% through its domestic phase 3 trial, and the company plans to complete the trial in the first half of this year and then seek marketing approval. Follow-on pipelines include INV-001, a contrast agent for diagnosing lymphatic disorders, and INV-003, an oral contrast agent for diagnosing pancreatobiliary disorders. INV-001 is in a domestic phase 2a trial, and INV-003 has completed preclinical studies and is preparing to enter clinical trials.
The company said it plans to pursue contrast agent exports focused on Asia, including Japan, Southeast Asia and China, while also pursuing technology transfer to global pharmaceutical companies.
Shin said, "We are also conducting U.S. Food and Drug Administration (FDA) clinical trials to increase the value of a technology transfer," adding, "INV-002 received clearance for a phase 2 trial in the United States, and INV-001 has also successfully entered a U.S. phase 2 trial."
The company will offer 1.18 million shares in the IPO. The offering price is 12,100–16,600 won, for a total offering size of about 14.3 billion–19.6 billion won.
The company's revenue is 0 won, and as of the third quarter last year, the operating loss was about 6.257 billion won. The company presented the potential to reach 37.6 billion won in revenue, 22.2 billion won in operating profit, and about 18.3 billion won in net profit in 2029. Reflecting product launches and plans for global technology exports, Shin said these figures were "calculated on a conservative assumption of contrast agent market share."
The company set its desired price range by selecting Dong Kook Lifescience, which holds the No. 1 share in Korea's contrast agent market, and DuChemBio, which mainly sells PET-CT diagnostic radiopharmaceutical contrast agents, as peer corporations. It applied the two companies' average price-earnings ratio (PER) of 24.3 times and then factored in a discount rate of 21.9%–43.1%.
Dongkook Pharmaceutical and its subsidiary Dong Kook Lifescience are also strategic investors (SI) in Inventera. If the contrast agents under development by Inventera clear the regulatory hurdle and are launched, Dong Kook Lifescience plans to sell them exclusively. Rather than competitors, they have formed a relationship of joint growth. Medytox Venture Investment, KTB Network, Yuanta Investment, and Eugene Investment & Securities have also invested in the company.
The company's IPO performance will likely be compared with Dong Kook Lifescience's IPO results from February last year. In Dong Kook Lifescience's case, the offering price of 9,000 won fell below the desired range of 12,600–14,300 won, and there was market talk that the deal had fizzled. However, with sentiment that the offering price was low, the stock jumped more than 50% on the first day of trading. Dong Kook Lifescience's 2024 annual revenue was 131.8 billion won, with operating profit of 11.9 billion won.
The company said it also plans to move into therapeutic development. Shin said, "We are pursuing development of therapeutics such as antibody-drug conjugates (ADC) using our platform technology," adding, "We will grow into a nanomedicine corporations that expands from diagnosis to treatment by creating a stable revenue base through new drug commercialization."
Book-building for institutions runs through the 17th, and the retail subscription period is on the 23rd–24th. The lead underwriter is KB Securities.