'Alzheimer’s drug Leqembi to boost demand for DuChemBio’s radiopharmaceuticals'

"Any drug requiring diagnostic imaging for Alzheimer's disease will inevitably depend on DuChemBio’s radiopharmaceuticals."

With over 90 percent of Korea’s Alzheimer’s diagnostics market, DuChemBio seeks to cement its dominance ahead of its Kosdaq listing.

DuChemBio CEO Steve Sang-woo Kim's bold remarks came at an initial public offering (IPO) press conference in Seoul on Friday, revealing the company's plans to scale production and lead the charge in Alzheimer’s diagnostics.

With over 3.38 million dementia patients in the country, the market for Alzheimer’s diagnostic tests is valued at 1.7 trillion won ($1.2 billion), potentially reaching 5 trillion won as repeated diagnostics come into play.

The launch of Eisai Korea’s Alzheimer’s drug, Leqembi (lecanemab), which requires either a cerebrospinal fluid analysis or PET-CT scan to detect beta-amyloid plaque buildup, is expected to significantly boost demand for DuChemBio’s radiopharmaceuticals, Kim said. Each patient requires one to three diagnostic scans, creating a potential need for up to 10 million doses.

“DuChemBio’s leadership in PET-CT radiopharmaceuticals puts us in a strong position to capitalize on the growing demand for Alzheimer’s diagnostics,” Kim said, referencing the Ministry of Drug and Safety’s endorsement of PET-CT scans for diagnosis.

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

DuChemBio's path to expanding its influence begins with its IPO and plans to reinvest the funds into further growing the radiopharmaceutical sector. The Korean market, expected to grow at an annual rate of 11.2 percent, could surpass $300 million by 2033, driven by advancements in dementia treatment and diagnostic technology.

While markets like the U.S. face challenges such as long wait times for scans, Kim said DuChemBio enjoys a competitive edge thanks to Korea’s efficient healthcare system. With Leqembi’s phase 3 trials showing a 27 percent reduction in Alzheimer’s progression, DuChemBio’s products—VIZAMYL and Neuraceq—are poised see surging demand, he added.

Despite the high fixed costs inherent in the radiopharmaceutical industry, DuChemBio’s expanding operations aim to widen its competitive edge. Kim acknowledged the steep price of Leqembi—around 30 million won per year—but pointed to a 2022 Korean Dementia Association survey indicating that 7 percent of respondents would pay for treatment regardless of cost. "This suggests that as many as 230,000 individuals could seek treatment with Leqembi even without insurance coverage," he said.

But Kim raised a critical issue: while Korea has 141 PET-CT scanners with the capacity for 290,000 scans annually, DuChemBio’s current production of 90,000 doses a year is insufficient to meet demand. “Even if patients are willing to pay out of pocket, we’re facing a major shortfall,” he said.

To meet this demand, DuChemBio plans to expand its capacity by 120,000 doses by 2028, with production ramping up at four centers nationwide. Kim warned, though, that shortages will persist—especially as patients require multiple scans.

DuChemBio is also eyeing new drugs like Eli Lilly’s Kisunla (donanemab), which requires multiple scans and could further strain capacity. Despite the potential for supply constraints, Kim views this shortage as a business opportunity, forecasting 100 billion won in revenue by 2028 from the sale of 210,000 doses.

Beyond Alzheimer’s diagnostics, DuChemBio is expanding into the contract manufacturing and development (CDMO) market. Kim said he sees strong potential in supplying therapeutic isotopes to the Asian market, where the logistics infrastructure is well-positioned to handle the short half-lives of therapeutic radiopharmaceuticals.

“We’re in discussions with global pharmaceutical companies, positioning Korea as a key hub for the production of radiopharmaceuticals,” Kim said, noting that DuChemBio is in the final stages of securing a technology transfer agreement to produce these isotopes.

By 2027, DuChemBio aims to produce 10,000 doses annually, solidifying itself as a critical player in the radiopharmaceutical sector. The company is also in talks with two major pharmaceutical firms involved in phase 3 trials for PSMA-targeted prostate cancer therapies. 

DuChemBio plans to offer 1.43 million shares in its upcoming IPO, with a proposed offering price between 12,300 and 14,100 won per share. The total offering amount is expected to range from 17.5 billion to 20.1 billion won. The demand forecast for institutional investors will take place from Dec. 20 to 26. The listing is set for Dec. 20, with NH Investment & Securities as the lead underwriter.