KOAS seeks to acquire antibody drug developer Novelty Nobility

KOAS, one of the leading office furniture companies in Korea, is undergoing a major transformation, seeking to acquire Novelty Nobility, a biotech company specializing in antibody-based new drug development. 

KOAS disclosed its intention to enter the biotech industry through a public announcement last Friday. KOAS has decided to invest 50 billion won ($36 million) in Novelty Nobility through new funding from institutional investors. Through this acquisition, KOAS will incorporate Novelty Nobility, an emerging leader in the development of antibody-based drugs for autoimmune diseases and next-generation targeted anticancer agents (ADCs, antibody-drug conjugates), as a subsidiary and become its major shareholder.

Novelty Nobility possesses diverse and innovative mechanisms for new drug development based on antibodies, and holds multiple antibody target therapy pipelines based on its antibody platform technology.

Novelty Nobility has two pipelines, NN3201 and NN3206, which apply unique next-generation payloads. Among these, NN3206 was selected for Johnson & Johnson's global incubator network, JLAB, in April this year. NN3201 has demonstrated high specificity against diseases and is reportedly attracting attention from multiple global big pharma companies and Chinese biotech firms that either possess or are in the process of obtaining approval for immune checkpoint inhibitors, as they await clinical results.

Additionally, NN2802 (allergy), an antibody therapy based on C-Kit, is being developed with the goal of becoming best-in-class, while NN4101 (retinal disease) aims to be first-in-class. NN4101 is being evaluated as a new third-generation treatment for neovascular retinal disease, differing in its mechanism from that of second-generation therapies.

NN2802 (allergy) is a new drug for the treatment of chronic idiopathic urticaria, which has completed phase 1a clinical trials with the U.S. Food and Drug Administration (FDA) and is currently preparing for phase 1b/2a trials. In the preclinical stage, the company secured a licensing deal worth 88 billion won after receiving an upfront payment of $7 million from US-based ValenzaBio. However, the technology was later returned. During this process, despite receiving an unusually high “A, A” rating in the technology evaluation for a technology-based listing exemption, the company voluntarily withdrew its listing review application. Novelty Nobility is conducting phase 1b/2a trials for NN2802.

Novelty Nobility plans to secure large-scale licensing deals by 2026 through its new drug pipeline.

KOAS entered the biotech business in March this year by jointly investing in HLB Pep (formerly Anygen) with the biotech group HLB. The following is a Q&A with KOAS's CEO Min Kyung-joong.

Question: What was the background behind the acquisition of Novelty Nobility?

Answer: KOAS pursues a “healthy future” for humanity. To this end, we have consistently endeavored to realize our vision through the pharmaceutical and biotech industries. At the same time, we needed to identify new growth drivers as a listed company.

In this process, the voluntary withdrawal of Novelty Nobility's IPO was deeply regrettable. We were well aware of the process surrounding the request to return the L/O, which made it even more so. Given that Novelty Nobility is a biotech company with the potential to reach a market capitalization of trillions of won, we wanted to collaborate to unlock its growth potential. Through the sudden acquisition of Novelty Nobility, KOAS has been able to realize its dream of transforming into a biotech company and growing into a global big pharma.

Q: You received the return of the L/O. What are the circumstances behind this?

A: It is quite different from some of the rumors circulating in the market. ValenzaBio, which imported the technology, was acquired by the U.S. biotech company Acelyrin, and the technology development was excessively delayed for more than two years. In response, Novelty Nobility strongly protested the breach of contract and swiftly recovered the technology. During this process, they voluntarily withdrew their IPO application, as while listing is important, time is equally precious in the development of biopharmaceutical drugs.

NN2802 was returned with additional clinical trials in the U.S. conducted beyond the scope of the technology transfer agreement. This is a silver lining. Currently, the company is proceeding with phase 1b/2a trials under the sustained interest of major global pharmaceutical companies, awaiting the results of follow-up clinical trials. The company plans to pursue a larger loan in 2026. It aims to export technology that surpasses Dupixent and Xolair as the best-in-class drug for definite allergies and chronic idiopathic urticaria.

Q: Who are the institutional investors?

A: Several prominent institutions are showing significant interest. We appreciate your continued attention.

Q: In March, KOAS invested in HLB Pep alongside HLB. Will HLB also participate as a strategic investor in KOAS?

A: We have always had the ambition to enter the biopharmaceutical industry. HLB Pep was a promising biotech company with sufficient investment potential. HLB is a leading biopharmaceutical company in the Korean and global markets, with new drug development and launch on the horizon. It is true that many companies are showing significant interest in KOAS' transformation into a biotech company. However, we cannot provide specific details at this time.