Chong Kun Dang's AbClon Bet Delivers Sixfold Gain [KFT Topic]

[Korea Financial Times, Yang Hyunwoo] Chong Kun Dang's investment in AbClon is showing signs of hitting the jackpot. As AbClon's share price has surged recently, the current valuation gain exceeds six times the initial investment. Chairman Lee Jang-han and other members of the Chong Kun Dang owner family sold their AbClon shares last month. Regardless of the owner family's stake sale, Chong Kun Dang plans to continue its joint research and development (R&D) partnership with AbClon.

According to industry sources on the 8th, Chong Kun Dang is drawing attention due to AbClon's recent sharp stock price increase. The assessment is that Chong Kun Dang's foresight in investing KRW 12.2 billion in AbClon last year has paid off brilliantly.

Previously, in May last year, Chong Kun Dang signed a strategic equity investment and joint R&D partnership agreement with AbClon, an antibody drug development company. Through this agreement, Chong Kun Dang acquired 1.4 million registered common shares of AbClon through a third-party allotment capital increase. The new share issuance price was KRW 8,723, with a total investment amount of approximately KRW 12.2 billion.
Calculating the value of Chong Kun Dang's AbClon stake based on the current share price, the return rate reaches 551%. This represents a valuation gain of more than six times the initial investment. Based on the day's closing price, AbClon's share price stands at KRW 56,800.

Separately from the company, the Chong Kun Dang owner family disposed of their AbClon shares. Chairman Lee Jang-han, his eldest son Lee Joo-won (executive director), eldest daughter Lee Joo-kyung, and second daughter Lee Joo-ah sold all 48,905 shares of AbClon from the 2nd to the 4th of last month. The selling price ranged from KRW 40,501 to KRW 41,331 per share.

A company official said, "Regardless of the owner family's stock sale, the joint R&D partnership with AbClon will remain intact."

AbClon is an antibody drug and CAR-T (Chimeric Antigen Receptor T-cell) cell therapy specialist established in 2010. Beyond simple drug development, the company possesses platform technologies for discovering and designing new antibodies. AbClon's core platforms include CAR-T, NEST, and AffiMab.

The CAR-T therapy platform separates immune cells from the patient's body and selectively attacks cancer cells through genetic manipulation. NEST is an antibody drug technology platform that discovers novel antibody binding sites on disease proteins. AffiMab is a bispecific antibody technology that simultaneously neutralizes two different target proteins.
The company's major pipelines include gastric cancer treatment 'AC101', CAR-T therapy 'AT101', and solid tumor-targeting CAR-T therapy 'AT501'.

Through the agreement with AbClon, Chong Kun Dang secured priority domestic sales rights for AT101, which AbClon is developing. The companies also plan to establish a comprehensive cooperation framework for joint development and commercialization of new CAR-T therapies and bispecific antibody-based drugs in the future. AT101 is currently undergoing Phase 2 clinical trials.

Furthermore, the two companies plan to jointly develop hematologic cancer, solid tumor, CAR-T therapies, and bispecific antibody therapies targeting AT501, PSMA (Prostate-Specific Membrane Antigen), CD30 (protein), and 4-1BB, which is involved in T-cell activation.

Kim Young-joo, CEO of Chong Kun Dang, stated, "Based on AbClon's next-generation immune cell therapy platform and proprietary antibody development technology, we will expand our bio-pharmaceutical portfolio and secure competitiveness for global market entry."

Yang Hyunwoo (yhw@fntimes.com)