Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Equity Capital Markets

SillaJen Biotherapeutics (established in 2006) submitted the IPO report. The company develops potent multi-functional immunotherapeutics for cancer. In other words, it makes a virus ("Pexa-Vec") that only kills cancer cells. It is currently doing a global Phase 3 clinical trial in over 15 countries for patients with HCC. SillaJen reached an agreement with the U.S. FDA and now holds a special protocol assessment relating this Phase 3 trial. SillaJen's "Pexa-Vec" is the first engineered oncolytic virus with demonstrated intravenous delivery to tumors and induction of cancer targeting antibodies (thereby leading to improved survival rate).SillaJen has virtually no revenue at this point. Nonetheless, SillaJen was qualified for the fast-track IPO program exclusive for biotech companies. SillaJan actually passed the technology evaluation (conducted by the KRX) in May, which is required for a biotech company who wants to go public through the fast-track IPO program. In this evaluation, SillaJen got AA grade, just one notch lower than the highest grade of AAA. SillaJen is currently Korea's biggest over-the-counter company. SillaJen's Pexa-Vec was proved to be highly effective after being administered to 35 late-stage liver cancer patients in Phase 2 trial. As a result, there are high expectations that Pexa-Vec will successfully pass Phase 3 trial for commercialization.In particular, SillaJen already partnered with some of the global big players such as Transgene (Europe) and Lee's Pharmaceuticals (Hong Kong) for marketing and distribution. This is a rare case for a biotech start-up like SillaJen. SillaJen plans to complete Phase 3 trial by October 2019. The global market size of anticancer virus treatment is estimated at ₩1tril. More importantly, Pexa-Vec's real competitor in the liver cancer treatment market segment is only German drug maker Bayer's "Nexavar". Of course, SillaJen's value at this point still depends on several unknown future factors. But what seems certain at this point is that SillaJen's anticancer virus treatment drug itself is a proven product and unlikely to fail.* In Part 1 (as below), I summarized the overview of this IPO with the financials and valuation. In Part 2, I will analyze the company's growth potential and appropriate valuation level.

SillaJen Biotherapeutics (established in 2006) submitted the IPO report. The company develops potent multi-functional immunotherapeutics for cancer. In other words, it makes a virus ("Pexa-Vec") that only kills cancer cells. It is currently doing a global Phase 3 clinical trial in over 15 countries for patients with HCC. SillaJen reached an agreement with the U.S. FDA and now holds a special protocol assessment relating this Phase 3 trial. SillaJen's "Pexa-Vec" is the first engineered oncolytic virus with demonstrated intravenous delivery to tumors and induction of cancer targeting antibodies (thereby leading to improved survival rate).SillaJen has virtually no revenue at this point. Nonetheless, SillaJen was qualified for the fast-track IPO program exclusive for biotech companies. SillaJan actually passed the technology evaluation (conducted by the KRX) in May, which is required for a biotech company who wants to go public through the fast-track IPO program. In this evaluation, SillaJen got AA grade, just one notch lower than the highest grade of AAA. SillaJen is currently Korea's biggest over-the-counter company. SillaJen's Pexa-Vec was proved to be highly effective after being administered to 35 late-stage liver cancer patients in Phase 2 trial. As a result, there are high expectations that Pexa-Vec will successfully pass Phase 3 trial for commercialization.In particular, SillaJen already partnered with some of the global big players such as Transgene (Europe) and Lee's Pharmaceuticals (Hong Kong) for marketing and distribution. This is a rare case for a biotech start-up like SillaJen. SillaJen plans to complete Phase 3 trial by October 2019. The global market size of anticancer virus treatment is estimated at ₩1tril. More importantly, Pexa-Vec's real competitor in the liver cancer treatment market segment is only German drug maker Bayer's "Nexavar". Of course, SillaJen's value at this point still depends on several unknown future factors. But what seems certain at this point is that SillaJen's anticancer virus treatment drug itself is a proven product and unlikely to fail.* In Part 1 (as below), I summarized the overview of this IPO with the financials and valuation. In Part 2, I will analyze the company's growth potential and appropriate valuation level.

SillaJen IPO Part 1 - Schedule, Financials & Valuation

Thematic (Sector/Industry)

SillaJen Biotherapeutics (established in 2006) is indeed a rare breed in Korean pharmaceutical world. It is not a generic drug maker. It is not a biosimilar maker either. It makes new biomedical products. A majority of Korea's pharmaceutical makers are still generic drug makers. The likes of Celltrion and Samsung Bioepis have emerged as a biosimilar maker. But they are still a few. Biomedical makers are even rarer. Hanmi Pharmaceutical is one of these rare breeds. Now, another biomedical maker…

SillaJen Biotherapeutics (established in 2006) is indeed a rare breed in Korean pharmaceutical world. It is not a generic drug maker. It is not a biosimilar maker either. It makes new biomedical products. A majority of Korea's pharmaceutical makers are still generic drug makers. The likes of Celltrion and Samsung Bioepis have emerged as a biosimilar maker. But they are still a few. Biomedical makers are even rarer. Hanmi Pharmaceutical is one of these rare breeds. Now, another biomedical maker…

SillaJen's December IPO: Valuation, Growth Expectation and IPO Timing

South Korea

Bukwang Pharmaceutical Co., Ltd. produces oral hygienic, and pharmaceutical products.  The Company's products include over-the-counter drugs, toothpastes, and toothbrushes.

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Bukwang Pharmaceutical (003000 KS)

SillaJen IPO Part 1 - Schedule, Financials & Valuation

SillaJen Biotherapeutics (established in 2006) submitted the IPO report. The company develops potent multi-functional immunotherapeutics for...

Sanghyun Park

SillaJen's December IPO: Valuation, Growth Expectation and IPO Timing

SillaJen Biotherapeutics (established in 2006) is indeed a rare breed in Korean pharmaceutical world. It is not a generic drug maker. It is not a...

Sanghyun Park

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52-week Range

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