South Korea’s bioengineering companies are rushing to go public, riding on preferential listing criteria for newcomers with patented technologies and strong investors’ appetite for drug developers.

According to multiple industry sources on Sunday, Celltrion Healthcare, marketing and distribution arm of biosimilar maker Celltrion Inc., readies an initial public offering on the secondary Kosdaq market on July 28 after a two-day book building session on July 13-14. Seo Jung-jin, Celltrion group’s chairman, will spearhead investment road show from July 3 in financial cities including New York and Hong Kong.

Celltrion Healthcare is in charge of marketing all new drugs and biosimilars of Celltrion, including blockbusters Remsima and Truxima. Its operating profit for 2016 surged 59.6 percent on year to 178.6 billion won ($157.3 million) and sales jumped 88.3 percent to 757.7 billion won. Celltrion Healthcare’s net worth is estimated at 5 to 6 trillion won.

Tissue Gene, biotech unit of pharmaceutical firm Kolon Life Science Inc. submitted an application for a preliminary IPO review on June 14. Tissue Gene is developing a novel drug to treat patients with degenerative arthritis, and estimated to value more than 2 trillion won. The company plans to use the proceeds from the IPO to finance the phase 3 clinical trial of its new drug in the U.S.

Dongkoo Bio & Pharm Co. is preparing to go public in the latter half of this year. Established in 1970, the pharmaceutical has been one of the best known names in local dermatology market with its drug being the country’s most commonly prescribed dermatology medication in recent eight years. It recorded a historic high operating profit of 10.5 billion won on sales of 87.3 billion won last year. It is now focused to bolster stem cell business.

CJ Healthcare, a spin-off from CJ CheilJedang in 2014, plans to re-pursue IPO this year. The pharmaceutical company that flirted with the idea last year put it off to strengthen its value. Its digestive disorder gastroesophageal reflux disease (GERD) drug is waiting for marketing approval from local drug administration after completing phase 3 clinical trial earlier this year. The company had secured 100 billion won worth license-out arrangement with China-based Shandong Luoxin Pharmaceutical Group Stock Co., which grants the Chinese firm the rights to develop, manufacture, and sell the new GERD treatment drug, in 2015.

By Kim Hye-soon

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