Korean radiopharmaceutical company DuChemBio said Friday that it has received preliminary approval from the Korea Exchange for a listing on Kosdaq. NH Investment & Securities is the lead underwriter.

With the submission of its securities report, DuChemBio is moving forward with the initial public offering (IPO) process. The company aims to use the Kosdaq listing to fund facility investments and enhance corporate value through increased stock liquidity. The proceeds from the IPO will be directed towards expanding manufacturing facilities for dementia diagnostics and developing its radiopharmaceutical contract development and manufacturing (CDMO) business.

DuChemBio operates a total of 12 radiopharmaceutical manufacturing sites, the most in Korea, including six that meet good manufacturing practice (GMP) standards. The company has strengthened its market position by offering diagnostic agents for degenerative brain diseases such as dementia and Parkinson’s, along with cancer diagnostics.

The company holds more than 90 percent of the market share for Alzheimer’s dementia diagnostics in Korea, based on production data from the Ministry of Food and Drug Safety last year.

A company official noted that “expectations are high” for DuChemBio's future growth, especically with the upcoming domestic launch of Leqembi (ingredient: lecanemab), an Alzheimer’s treatment developed by Eisai and Biogen targeting beta-amyloid, expected in December. 

“If Leqembi is widely distributed in Korea’s healthcare system, demand for early diagnostic PET/CT scans for dementia treatment is expected to rise, potentially boosting DuChemBio's supply of dementia diagnostics,” the official explained. Leqembi received approval from the Ministry of Food and Drug Safety on May 24.

A 2024 Allied Market Research report forecasts the global radiopharmaceutical market will grow from 10.7 trillion won ($7.7 billion) in 2023 to 29.5 trillion won by 2033, at an annual growth rate of 10.6 percent. The Asia-Pacific region is expected to experience the highest growth, with an annual increase of 11.4 percent through 2033.  

DuChemBio's financial performance has been growing steadily, with annual revenue increasing from 10.9 billion won in 2021 to 32.4 billion won in 2022, and 34.7 billion won in 2023. Its operating profit for 2023 was 5.2 billion won, up 238.7 percent from the previous year.

In August, DuChemBio acquired a 100 percent stake in RadioDNS Labs, a radiopharmaceutical R&D firm, to strengthen its ability to develop and commercialize diagnostic and therapeutic radiopharmaceuticals. “This acquisition is expected to accelerate our entry into the global market,” the DuChemBio official said. 

DuChemBio plans to reorganize its R&D capabilities to focus on diagnostic and therapeutic radiopharmaceuticals and radiopharmaceutical CDMO services. The company intends to cover the full drug development lifecycle—from identifying new drug candidates to clinical trials and regulatory approvals. 

DuChemBio also announced its goal to become a global leader in radiopharmaceutical CDMO services, addressing the global shortage of radiopharmaceuticals. After its planned Kosdaq listing, the company will pursue significant investments in CDMO production facilities starting next year.

"The preliminary approval for Kosdaq listing is the first step toward establishing ourselves as a radiopharmaceutical leader on the exchange," the DuChemBio official said. 

Founded in 2002, DuChemBio’s largest shareholder is pharmaceutical wholesaler Geo-Young, which owns 54.3 percent of the company. Geo-Young, listed on the Korea New Exchange (Konex) in 2014, specializes in the development, manufacturing, and sale of radiopharmaceuticals for diagnosing and treating brain diseases and cancer.