This week, three biotech companies—Oncocross, Onconic Therapeutics, and DuChemBio—are debuting on the Kosdaq market, pricing their initial public offerings (IPOs) below their original target ranges amid declining investor sentiment.

Investor sentiment in the biotech sector has been significantly affected by a combination of global and local factors.

The election of Donald Trump as U.S. President has contributed to heightened political and trade uncertainties, with his administration’s unpredictable policy changes, including shifts in trade agreements, tariffs, and foreign relations, creating instability in global markets.

This volatility has particularly affected industries with long development cycles and high-risk profiles, such as biotechnology, as investors grow wary of potential disruptions to cross-border collaborations, clinical trials, and global supply chains.

Locally, the recent abrupt imposition and lifting of martial law by President Yoon Suk Yeol has added to the uncertainty.

The political tension stemming from the martial law debacle has not only raised concerns about governance and public safety but also eroded confidence in Korea's overall investment climate.

“Political instability often leads to risk aversion among investors, and the biotech sector—already perceived as high-risk due to its reliance on lengthy R&D timelines, regulatory hurdles, and uncertain returns—has been disproportionately affected,” an industry official told Korea Biomedical Review, asking to remain anonymous due to the sensitivity of the issue.

Despite such unfavorable conditions, Oncocross was the first to list on Wednesday, achieving a strong subscription rate of 1,313:1 during its retail offering period, with deposits totaling 1.7 trillion won ($1.1 billion)

However, Oncocross set its IPO price at KRW 7,300, significantly below its price band initially announced by the company, which was 10,100 won to 12,300 won.

A representative from Mirae Asset Securities, the underwriter for the listing, commented, "Despite Oncocross having a superior business model compared to its peers, we decided on a market-friendly pricing strategy to accommodate the subdued atmosphere in the domestic IPO market, where sharp declines in share prices on the listing day have become a concern."

Onconic Therapeutics is set to follow on Thursday, with an IPO price of 13,000 won, below its target range of 16,000 won to 18,000 won, while DuChemBio will conclude the listings on Friday with a final price of 8,000 won, 35 percent lower than its target range of 12,300 won to 14,100 won.

Added regulatory pressure

The regulatory pressures have also intensified in Korea with Korean financial authorities have increased the stringency of IPO requirements for biotech firms, demanding more robust data from clinical trials or prior licensing agreements with established pharmaceutical companies. This heightened scrutiny has compounded existing investor concerns, as companies now face greater challenges in securing public funding.

For example, Orum Therapeutics, which had been poised as the most high-profile listing for a biotech firm this year, announced last Saturday that it would delay its IPO.

The company cited the difficulty of obtaining a fair valuation in the current climate, despite a strong track record that includes significant licensing deals with global pharmaceutical giants.

Orum faced additional setbacks when the Financial Supervisory Service (FSS) required it to revise its filing multiple times.

The company disclosed in its final amended filing that a participant in a phase 1 clinical trial for its lead pipeline candidate, ORM-5029, experienced a serious adverse event (SAE).

ORM-5029, a HER2-targeting breast cancer therapy, is Orum’s only pipeline candidate currently in clinical development. The company warned that delays in clinical trials could impact its licensing schedules and revenue targets.