[THE INVESTOR] Korea’s biotech firm Genexine has secured a 250 billion won (US$233 million) investment to put spurs to the development of its investigational immuno-oncology drug and long-acting growth hormone.

The company raised 200 billion by issuing some 22 million new shares allocated to a third-party investor group, which includes Yuhan, Samsung Securities, Kiwoom Securities and others. The rest 50 billion won was secured by issuance of convertible bonds, Genexine announced in a regulatory filing on March 20. 

“The secured funding is expected to boost the company’s R&D. The valuation of lead pipeline HyLeukin is likely to increase by conducting clinical trials for diversified indications,” said Hong Ga-hye, an analyst at Daishin Securities.

The investment comes at a time when the company is in need of cash injection to push its earlier-stage programs deeper into the clinic. The company will earmark 190 billion won for the clinical studies while 60 billion won will be used for its joint ventures and affiliates, its US-based subsidiary NeoImmuneTech, in particular.

On the same day, Genexine said it received clearance from the US Food and Drug Administration for the Investigational New Drug application for the phase 1 and 2 trials of IL-7 antibody HyLeukin for brain tumor. In Korea, it received approval for initiating phase 1b clinical trials in patients with solid tumor in December.

HyLeukin marks the first product developed by Genexine that received the green light from the US drug regulator. “It is a significant milestone for HyLeukin’s global clinical development. We will accelerate the development of the drug by carrying out additional studies to see the possibility of developing it as a combination therapy with immune checkpoint inhibitors,” a Genexine official said.

By Park Han-na (hnpark@heraldcorp.com)