Five Biotech-Focused VCs Participate: DSC Investment, Paratus Investment, Dongyu Investment, AlphaView Partners, and Winbest Venture Investment

The next-generation blood cancer CAR T-cell therapy, 'Nespe-cel ' is highly evaluated for its  possibility of accelerated market approval, and the innovative solid tumor therapy, 'AT501 CAR T-cell new therapy', is also highly valued for its clinical and economic potential.

The increased feasibility for commercialization of AC101 (HLX22), which was licensed out to Henlius, also contributed to gaining investor confidence.

AbClon, an antibody drug development company, announced on the 1st that it has decided to issue 36 billion KRW worth of perpetual convertible bonds (CBs) and convertible preferred stocks (CPSs) through a third-party allotment. The issuance price is 18,223 KRW.

The perpetual CBs being issued by AbClon have a 30-year maturity and lack the bondholders' right of redemption, allowing them to be classified as equity for accounting purposes. The 25.2 billion KRW issuance is expected to increase the total capital—similar to an increase in paid-in capital—thereby achieving the effect of strengthening the equity base on the financial statements.

The surface interest rate for this CB is 0%, meaning the company is securing interest-free financing. Essentially, investors in this CB are focused on the potential appreciation of AbClon's stock price rather than receiving interest income.

Additionally, the non-redeemable CPSs will be issued for 10.8 billion KRW. These CPSs are also treated as equity for accounting purposes, which contributes to the improvement of the financial structure.

An AbClon official emphasized, "The issuance of these perpetual CBs and CPSs involves financial instruments recognized as equity for accounting purposes, which has the effect of fundamentally improving the financial structure of our technology-specialized company."

The official added, "At a time when the issue related to the legal deficit and equity ratio has become a major concern for biotech firms, this investment will resolve that issue for AbClon."

The biotech-specialized VCs that participated in this investment are DSC Investment, Paratus Investment, Dongyu Investment, AlphaView Partners, and Winbest Venture Investment. These investment institutions have been recognized for their expertise in advanced bio-pharmaceuticals, including CAR T-cell therapies, within the domestic bio-healthcare sector.

An AbClon official stated, "This investment decision is the result of highly valuing both the possibility of early market approval for the developing next-generation blood cancer CAR T-cell therapy, 'Nespe-cel (AT101),' and the clinical and economic value of the innovative solid tumor therapy, the 'Switchable CAR T-cell therapy (AT501).'"

The official added, "In particular, the increased commercialization visibility of AC101 (HLX22), which was licensed out to Henlius—including its progression into global Phase 3 trials and receiving Orphan Drug Designation in the U.S. and Europe—also contributed to gaining investor confidence.

Currently, AbClon expects the success in CAR T-cell therapy development to lead to achievements in new drug development based on its bispecific antibody platform technology, 'AffiMab.' AffiMab is a bispecific antibody technology that utilizes Affibodies, which are about 25 times smaller than conventional antibodies. New drugs such as 'AM105' for colorectal cancer and 'AM109' for prostate cancer are under development, and the research for AM109 was supported by the Korea Drug Development Fund (KDDF)

Meanwhile, AbClon had previously licensed out the HER2-targeting antibody therapy, 'AC101' (HLX22), to China's Henlius in 2016 and 2018 for a total deal size of 56 million USD. The drug is currently undergoing global Phase 3 clinical trials for gastric cancer.

Notably, after receiving Orphan Drug Designation from the U.S. FDA in March 2025, it was also granted the designation by the European Commission (EC) in May, thereby securing Orphan Drug status in both the U.S. and Europe.