Orum Therapeutics withdraws from IPO, citing ‘difficulties in fair valuation’

Orum Therapeutics, known for its large-scale technology transfer with a global pharmaceutical company, has suspended its initial public offering (IPO) process.

According to a withdrawal notice submitted to the Financial Services Commission last Friday, the company decided to suspend the listing process due to “difficulties in valuing the company following the recent stock market plunge.”

The company believes that the recent stock market decline has made it difficult to be valued appropriately.

In September, Orum Therapeutics received preliminary listing approval from the Korea Exchange and submitted a securities report the following month. The company planned to offer 3 million shares at 30,000 won ($21.4) to 36,000 won, but the offerings to institutional and retail investors, scheduled for October and November, were delayed due to several revisions.

In its withdrawal filing, Orum Therapeutics said there is no investor protection issue as no institutional investors have been allocated shares or general investors have subscribed. In a news release later that day, the company also revealed its plans to reapply for listing on the Kosdaq next year.

“Considering the current market conditions, we have determined that postponing the planned listing is in the best interest of our stakeholders,” said Orum Therapeutics CEO Lee Sung-ju. “We will do our best to continue our mission of developing innovative new drugs for patients needing treatment.”

Founded in 2016, Orum Therapeutics is a biotechnology company specializing in antibody-drug conjugate (ADC) and targeted protein degradation (TPD) technologies.

Its 2023 revenue was 135.4 billion won, and its net profit was 68.2 billion.

Last November, it signed a $180 million technology transfer agreement with BMS, and in July, it signed a global multitarget license agreement with Vertex Pharmaceuticals to develop gene-edited therapeutics.

Orum Therapeutics is conducting a U.S. phase 1 clinical trial of its lead pipeline candidate, ORM-5029, for breast cancer. It received IND approval from the U.S. Food and Drug Administration in August 2022 and the FDA’s fast-track designation in August 2023.

However, due to the recent report of a serious adverse event (SAE) in one participant in the phase 1 trial, the company has temporarily suspended the enrollment of new participants and will consult with the FDA to evaluate the safety and develop a risk mitigation plan.