Orum Therapeutics, a biotechnology firm specializing in antibody-drug conjugate (ADC) and targeted protein degradation (TPD) technologies, has suspended its initial public offering (IPO) process, citing difficulties in achieving a fair valuation due to the recent stock market downturn. The company made the announcement following a withdrawal notice submitted to the Financial Services Commission last Friday.
According to Orum Therapeutics, the current market conditions have made it challenging to accurately assess the company's value. The IPO was initially planned with an offering of 3 million shares priced between 30,000 won ($21.4) and 36,000 won. However, the offerings to institutional and retail investors, initially scheduled for October and November, were delayed due to multiple revisions.
CEO Lee Seung-joo stated, "Considering the current market conditions, we have determined that postponing the planned listing is in the best interest of our stakeholders. We will do our best to continue our mission of developing innovative new drugs for patients needing treatment."
Orum Therapeutics has confirmed that the withdrawal will not impact investors, as no shares were allocated to institutional investors, and no general investors subscribed. The company plans to reapply for listing on the Kosdaq exchange in the coming year.
Founded in 2016, Orum Therapeutics has established itself through technology transfer agreements, including a $180 million agreement with BMS in November 2023 and a global multitarget license agreement with Vertex Pharmaceuticals in July 2023 for gene-edited therapeutics. In 2023, the company reported revenue of 135.4 billion won and a net profit of 68.2 billion won.
Clinical Trial Update
Orum Therapeutics is currently conducting a Phase 1 clinical trial in the U.S. for its lead pipeline candidate, ORM-5029, targeting breast cancer. The U.S. Food and Drug Administration (FDA) granted IND approval in August 2022 and fast-track designation in August 2023. However, the company has temporarily paused enrollment of new participants due to a recent report of a serious adverse event (SAE) in one participant. Orum Therapeutics is consulting with the FDA to evaluate the safety data and develop a risk mitigation plan before resuming enrollment.
