Orum Therapeutics, a Korean biotech company known for its targeted protein degrader (TPD) technology and high-profile licensing deals with global pharmaceutical giants, is making a second attempt at an initial public offering (IPO) after its first effort was derailed by market volatility and clinical trial setbacks. 

This time, the company has revised its valuation and strategy, aiming to attract investor confidence despite uncertain market conditions.

On Thursday, the Financial Supervisory Service announced that Orum’s securities registration statement, filed on Dec. 23, has officially taken effect.

This allows the company to proceed with its institutional demand forecasting, scheduled to run from this Friday to next Thursday, ahead of its planned listing on the Kosdaq market. If successful, Orum expects to go public on Feb. 13.

The move marks Orum’s return to the IPO process just two months after it withdrew its application in November 2024. The previous withdrawal was attributed to a mix of factors, including challenging market conditions and a serious adverse event (SAE) during the phase 1 trial of ORM-5029, its breast cancer drug candidate. Following the incident, the company paused new enrollments and worked with the U.S. Food and Drug Administration to assess the safety and devise a risk mitigation plan.

“It’s difficult to pinpoint a single reason for the withdrawal—it was a combination of factors, including the poor state of the biotech market at the time,” an Orum official said. “Issues related to the SAE have been addressed in the revised registration statement, and we’re making this renewed attempt with optimism and preparation.”

To better align with market sentiment, Orum reduced its IPO price range by about 20 percent, from 30,000–36,000 won ($20.59–$24.71) to 24,000–30,000 won per share. The company also lowered the number of shares offered, from 3 million to 2.5 million, reducing its estimated market capitalization at listing to 642.9 billion won from the previous 771.4 billion won.

The company plans to use the proceeds to advance its pipeline projects, including ORM-5029 for breast cancer, ORM-1023 for small cell lung cancer, and ORM-1153 for hematologic cancer. Around 30 billion won will go toward project development, with 10.7 billion won allocated for research costs and 16.4 billion won for operating expenses.

Founded in 2016, Orum has made a name for itself with its degrader-antibody conjugate (DAC) platform, which combines TPD with antibody-drug conjugates to degrade proteins associated with diseases. The company has leveraged its technology to secure significant licensing agreements with major pharmaceutical firms.

In October 2023, Orum licensed its acute myeloid leukemia (AML) drug candidate, ORM-6151, to Bristol Myers Squibb for $180 million, including an upfront payment of $100 million. In July 2024, it signed a multi-target licensing deal with Vertex Pharmaceuticals, receiving $15 million upfront for its TPD platform. These deals contributed to Orum’s 2023 revenue of $100 million and a net profit of $68 million.

Despite its achievements, some analysts question whether Orum’s valuation is sustainable. The company’s projected revenue for 2024 is 36.9 billion won, with an operating loss of 9.5 billion won. While Orum anticipates a net profit of 34.6 billion won by 2026, this would be significantly lower than its 2023 results, raising concerns about its long-term growth prospects.

Orum’s IPO comes as investors adopt stricter criteria for new listings. Several Korean companies have priced their IPOs below expectations in recent months. Orum may face similar scrutiny, particularly given that 33.01 percent of its shares will be tradable immediately after listing—a factor that could introduce volatility. The potential exercise of 1.45 million stock options, priced below the IPO range, adds to concerns about market stability.

If successful, Orum will be the first biotech company of 2025 to list on Kosdaq under Korea’s technology-specialized listing program. The company plans to finalize its IPO price on Feb. 3, with general subscriptions open from Feb. 4 to Feb. 5. Korea Investment & Securities is acting as the lead underwriter.