Venture capital companies are showing keen interest in Y-Biologics, a company specializing in antibody drug discovery and research. The company raised KRW 10 billion in Series B funding in the first half of this year, and it is expected to receive an additional investment of up to KRW 20 billion within this year.

 

The vast majority of those considering investing in the antibody drug developer in the second half of the year are venture capital companies that took part in the Series B funding in the first half. They are most likely to invest around KRW 10 billion, similar to the first half.

 

So why are major domestic venture capital companies considering investing in Y-Biologics?

 

The reviewers with expertise in investing in bio companies at venture capital companies say that it is due to Y-Biologics’ unique antibody drug candidate discovery technology that ensures a swift discovery process. There are also high expectations for mid- to long-term performance as the company is equipped with diverse and solid platforms, which is rare for bio startups.

 

Y-Biologics, established in 2007, is an R&D company with most of its employees boasting extensive experience in participating in a number of large-scale national antibody drug development projects. It possesses core platform technologies, professional research personnel, and automation and analysis equipment that are essential for initial research for new antibody drug development, candidate antibody screening, and discovery of candidates for actual development. 

 

Ymax-ABL, the technology that sets the company apart from its peers, is the largest library in Korea that contains about 100 billion different antibodies. With Ymax-ABL as well as Korea’s first automated screening system and optimized biopanning technology, Y-Biologics is laying the groundwork for screening human antibodies essential for antibody drug development.

 

Other differentiated technologies of Y-Biologics include Ymax-CEPT, a core technology for trawl-type target discovery, and Ymax-tEXPRESS, which accelerated the initial antibody sample production process by maximizing protein production in animal cells. Ymax-tEXPRESS, in particular, is over 20 times more efficient than the similar technologies developed by general pharmaceutical companies.

 

Y-Biologics is endeavoring to discover candidates for the development of antibody drugs with excellent efficacy in treating intractable diseases, such as cancer and autoimmune diseases. It became the first company in Korea to discover candidates for the development of immuno-oncology antibodies (anti-PD-1, anti-PD-L1) and is pursuing technology transfer and joint development with Ahn-Gook Pharm and Green Cross MOGAM Institute for Biomedical Research among others.

 

Y-Biologics has yet to begin marketing its products, so it is believed that once the necessary network is created, it will be able to gain a greater share of the domestic market and gain sufficient competitiveness in overseas markets.

 

Intervest, Kolon Investment, Smilegate Investment, E & Investment, Magna Investment, and Timewise Investment, and others that invested a total of KRW 10 billion in the first half of this year seem to anticipate the growth of Y-Biologics amid the expansion of the antibody drug market. CJ Healthcare, which is working with Y-Biologics to develop a dual-target antibody to secure a high value-added new drug pipeline, has also become a strategic investor (SI) noting the bio startup’s development capability.

 

Y-Biologics currently has seven new antibody drug and protein drug pipelines. Their goal is to secure at least two more clinical pipelines in 2018, starting with a bispecific antibody pipeline for the treatment of autoimmune diseases, which will enter the preclinical trial phase next year.

 

A representative of Y-Biologics said, “We will pursue IPO on KOSDAQ in 2019 by securing additional pipelines and such and make a leap as a competitive company in the global market by establishing various development and sales networks. [...] Our mid- to long-term goals are to obtain domestic marketing approval for a couple of our new antibody drug products in 2025 and develop the approved products for the global market by 2030.”

 

Meanwhile, venture capital companies looking to make an additional investment this year have noted the possibility of IPO and conclusion of licensing agreements with domestic and foreign pharmaceutical companies. This is because Y-Biologics’ new antibody drug development technology is an original technology enabling discovery of various antibodies and high profits can be expected if each of the dozens of antibodies discovered is licensed out or commercialized after clinical trials.

 

An industry official said, “The specific investment size has not been confirmed yet, but it being reviewed at a level similar to that of the Series B funding. [...] Investing in [Y-Biologics] seems very appealing because of their prompt new drug candidate discovery process and licensing strategy.”

 

Y-Biologics recorded KRW 680 million in revenue by providing research services last year. The largest shareholder of the company is CEO Young Woo Park, with 54.9% of the shares.

 

(By Se Yeon Kim, 2016-11-16 08:29:59)