One Year After Acquiring LigaChem: Orion’s 'Golden Goose'?
Tech Transfers Boost Orion’s Stock·Third-Gen Leader Rises
According to financial analytics firm FnGuide, LigaChem's revenue for 2024 is expected to reach KRW 130 billion, nearly four times the KRW 34.1 billion recorded in 2023. While still operating at a loss, LigaChem’s estimated operating deficit narrowed significantly to KRW 13.3 billion, compared to KRW 80 billion the previous year.
This turnaround is attributed to key technology transfer agreements. In December 2023, LigaChem signed a contract with Janssen for the development and commercialization of LCB84, a solid tumor treatment, securing an upfront payment of USD 100 million (KRW 130 billion). The earnings were reflected in last year’s revenue. Additionally, in October 2024, LigaChem signed a technology transfer agreement with Ono Pharmaceutical in Japan, valued at up to USD 700 million (KRW 940 billion). Portions of the undisclosed upfront payment from this deal will be reflected in 2024 and 2025 revenue.
As LigaChem’s performance improved, Orion's investment value surged. Orion’s acquisition price was KRW 59,000 per new share and KRW 56,186 per old share, but LigaChem's stock closed at KRW 115,100 on January 15, doubling Orion’s stake value within a year. This reflects growing market confidence in LigaChem’s technology and growth potential.
The leadership of Orion’s third-generation heir, Executive Director Seowon Dam, has also garnered praise. After being appointed as an internal director at LigaChem during its annual shareholders' meeting in March 2023, Dam has been actively involved in key decision-making processes. As LigaChem's global competitiveness and financial performance improve, Dam’s role in Orion’s leadership is expected to solidify further.
Industry experts credit the synergy between LigaChem’s technological expertise and Orion’s financial backing for the success. Initial skepticism about the compatibility of a food company and a biotech firm has faded as LigaChem achieved visible results, transforming concerns into recognition of Orion securing a robust growth engine.
Notably, Orion has allowed LigaChem’s founders to maintain autonomy over R&D strategies, fostering a collaborative environment. With Orion’s funding, LigaChem has been able to focus on R&D without financial constraints, positioning itself for stable growth and establishing itself as a success story in cross-industry M&A.
LigaChem is poised for further growth this year, with platform technology exports as a key driver. Its ConjuAll platform, which has demonstrated superior efficacy and safety compared to existing drugs in clinical data, has won multiple "Best ADC Platform Technology" awards at the World ADC Awards.
In a recent partnership with Samsung Biologics, LigaChem CEO Yongju Kim expressed optimism about earning substantial royalties starting this year, suggesting a more aggressive push for technology transfers. LigaChem is expected to leverage its competitive edge in ADC technology to secure more deals in 2024.
A LigaChem representative highlighted that Orion’s investment has enabled faster R&D efforts, with the number of ongoing projects increasing significantly. "While big pharma is aggressively advancing ADC trials globally, LigaChem’s ability to make proactive investments is a game-changer," they added.
Regarding future expectations, the representative noted, "Major pharmaceutical companies are actively exploring ADC platforms to enhance efficacy by optimizing drug delivery systems. We anticipate notable achievements in platform technology transfers this year."