HEM Pharma, debuting on Kosdaq next month, vows to lead microbiome sector

HEM Pharma will go public armed with its personalized microbiome simulation technology PMAS (Personalized Pharmaceutical Meta-Analysis Screening) and new drugs based on LBP (Live Biotherapeutic Products).

The company revealed its growth strategy after listing on the Kosdaq market at a news conference on Thursday.

HEM Pharma is a company specializing in microbiome co-founded by CEO Ji Yosep and CTO Wilhelm H. Holzapfel. The company provides customized healthcare services and an LBP discovery platform based on PMAS, a technology that simulates the gut microbiome through individual fecal samples.

In collaboration with Amway Korea, HEM Pharma provides “MyLAB Service,” which analyzes the microbiome through the gut health analysis system and recommends probiotics suitable for each individual. The company has also steadily launched Phytobiome-demonstrating products, a microbiome booster that enhances the effectiveness of targeted substances.

Regarding its LBP drug discovery platform, the company has established partnerships with many companies and discussed technology transfer. The company's LBP-based drugs include a treatment for lower anterior resection syndrome (LARS) and a treatment for depression.

According to the company, its LBP-based LARS treatment candidate HEMP-002 has won approval from the Australian Human Research Ethics Committee (HREC) for a phase 2 IND based on its safety profile as a treatment for cancer and postoperative bowel control. HEMP-001, a candidate for depression, was approved by the U.S. Food and Drug Administration (FDA) for a phase 2 IND based on its safety profile, including suppressing inflammation and improving serotonin levels by regulating the balance of gut microbes.

HEM Pharma’s turnover recorded an annual average growth rate of 101 percent over the past three years. In 2023, the company generated sales of 5.3 billion won ($3.8 million), and in the first half of 2024, it generated sales of 5.5 billion won.

“We will prioritize investing the proceeds from this listing in R&D,” the company said.

HEM Pharma will offer 697,000 shares, with a price of 16,400-19,000 won per share and a total offering amount of 11.4 billion won to 13.2 billion won. The company conducted institutional demand forecasting from Monday to Friday to confirm the offering price and will conduct subscriptions for general investors next Thursday and Friday to enter the Kosdaq market next month. Shinhan Investment & Securities is organizing the IPO.

“Through this listing, we will further increase our growth by fueling our global and business expansion,” HEM Pharma CEO Ji Yosep said. “We will grow into a global company to create high-added value while strengthening our competitiveness.”