이 기사는 2020년 06월 02일 08:00 더벨 유료페이지에 표출된 기사입니다.
Medici Investment will make a follow-up investment in Contera Pharma, a Copenhagen-based subsidiary of Korean drugmaker Bukwang Pharmaceutical, in the form of pre-initial public offering (IPO).
Medici Investment will solely participate in a 50 billion won ($41 million) Series B funding round led by the Danish bio-venture, according to investment banking industry sources on May 29. This marks the South Korean venture capital firm’s second investment in Contera Pharma after taking part in a three billion won Series A funding round in July 2019.
Medici Investment has reportedly bet on the possibility of the company being listed on the country's secondary Kosdaq market. Earlier this year, the Korea Exchange (KRX) has included Denmark as one of the qualified foreign stock exchanges to take advantage of the technology exception rule to go public on the Kosdaq market.
Contera Pharma is a bio-venture specializing in the central nervous system. Its main product JM-010 is a new drug candidate to treat dyskinesia caused by levodopa, commonly taken by patients with Parkinson’s disease. Although levodopa has excellent efficacy, long-term medication can cause movement disorders such as chorea or muscle tension disorder. The Danish company has made its phase 2 clinical trials currently underway in Europe. The U.S. Food and Drug Administration (FDA) also approved the phase 2 clinical trial of JM-010 in February. Bukwang Pharmaceutical acquired a 100 percent stake in the company for around 3.4 billion won in November of 2014.
Medici Investment valued Contera Pharma at 153.4 billion won and invested three billion won in July 2019. This time, the venture capital firm has increased its investment by more than 15 times to 50 billion won. The latest investment has been made based on Contera Pharma's estimated valuation of 200 billion won, meaning its estimated valuation has risen by approximately 25 percent in just one year.
Market insiders expect the funding led by Medici Investment to be completed smoothly considering its stable investment structure. Contera Pharma has to receive 'A' rating from all two rating agencies designated by the KRX to benefit from a special exemption for its IPO.
Medici Investment can exercise a put option at a five percent a year to Bukwang Pharmaceutical in case the Danish bio-venture fails to receive A ratings. Institutional investors are reportedly positive to the investment as a downside risk has been somewhat lowered.
(Reporting by Se-hun Jo)