KOSDAQBiotech & Pharma141080

LigaChem Biosciences

₩82,800▼ 3.94%2026-10-02 close

Market Cap

₩3T

Turnover

₩17.5B

Volume

210,000 shares

Shares out.

37M

PER

—

PBR

8.4×

EPS

-₩4,669

Dividend Yield

0.00%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close

Report overview

Between Widening Losses and Clinical Catalysts

License-fee recognition has thinned while R&D spending surged, widening losses, even as a cluster of verifiable events—partner clinical readouts and a China filing—lands in the second half of 2026.

1
Consolidated 2025 revenue rose to 141.6 billion won from 125.9 billion won in 2024, but the operating loss widened from 20.9 billion won to 106.5 billion won, an operating margin of -75.2%.
2
Second-quarter 2026 revenue fell to 5.5 billion won from 35.9 billion won a quarter earlier, with an operating loss of 72.0 billion won, showing how license-revenue timing drives extreme quarterly swings.
3
In June 2026 the board approved a 500 billion won raise tied to the National Growth Fund to finance in-house late-stage trials; the company said it is separate in purpose from roughly 450 billion won of existing cash.
4
In August 2026 a transition agreement with partner NextCure gave LigaChem sole development and out-licensing rights to the B7-H4 ADC 'LNCB74'.
5
Second-half events include completion of the China Phase 3 and a filing for the HER2 ADC 'LCB14' and the end of Phase 1 for 'LCB84' with J&J, but each outcome cuts both ways.

Business structure

LigaChem Biosciences is a biotech centered on antibody-drug conjugates (ADCs), with additional work in immuno-oncology and small molecules; its long-standing model is to discover candidates on its own linker and payload technology and license them to global partners.

The company says it concentrates on ADC, immuno-oncology and synthetic new drug R&D based on medicinal-chemistry capabilities, promoting a next-generation platform designed to overcome limits of earlier ADC technology. It is an ADC-focused affiliate of the Orion Group.

Cumulative disclosed out-licensing deal value has been cited at roughly 9.6 trillion won.

Revenue consists of licensing upfronts and milestones recognized over time plus a pharmaceutical/medical-device distribution business; in the first half of 2024, for example, revenue comprised 51.6 billion won of licensing fees and 10.3 billion won from the pharma business.

For the core HER2 ADC 'LCB14', China rights sit with Fosun Pharma and global rights with UK-based Iksuda Therapeutics, while the TROP2 ADC 'LCB84' was licensed to Johnson & Johnson in December 2023 in a deal sized at about 2.2 trillion won, with global Phase 1/2 co-development led by the company.

In addition, the ROR1 ADC 'LCB71' was licensed to China's CStone Pharma in 2021 and is being developed as CS5001, and in 2024 the company signed a global development and commercialization deal with Japan's Ono Pharmaceutical for the L1CAM-targeting ADC 'LCB97'.

In August 2026 it signed a transition and continuation agreement with NextCure—a partner since November 2022 under a 50:50 cost and profit split—securing sole development rights and third-party licensing rights for the B7-H4 ADC 'LNCB74'.

On competition, Enhertu has expanded into first-line therapy in the European Union, raising the clinical bar that follow-on HER2 ADCs must clear, leaving the company needing to prove both differentiation on validated targets and platform reproducibility on new ones.

Earnings trend

Quarterly revenue · Operating profit

₩32.6B-₩21.5B25Q2₩41.4B-₩23.2B25Q3₩16B-₩73.1B25Q4₩35.9B-₩37.4B26Q1₩5.5B-₩72B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩33.4B-₩50.4B2022₩34.1B-₩80.8B2023₩125.9B-₩20.9B2024₩141.6B-₩106.5B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩32.6B	-₩21.5B	−66.1%
2025Q3	₩41.4B	-₩23.2B	−56.0%
2025Q4	₩16B	-₩73.1B	−458.4%
2026Q1	₩35.9B	-₩37.4B	−104.3%
2026Q2	₩5.5B	-₩72B	−1300.9%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩33.4B	-₩50.4B	-₩45.1B	−150.8%	−20.5%	15.0%
2023	₩34.1B	-₩80.8B	-₩73.7B	−236.7%	−49.7%	27.9%
2024	₩125.9B	-₩20.9B	₩7.8B	−16.6%	1.3%	19.9%
2025	₩141.6B	-₩106.5B	-₩91.6B	−75.2%	−18.0%	29.7%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04

Earnings analysis

The shape of results is dictated by the recognition schedule of licensing income. In 2024, consolidated revenue was 125.9 billion won with an operating loss of 20.9 billion won but net profit attributable to owners of 7.8 billion won, and operating cash flow was a positive 78.5 billion won.

In 2025, revenue rose to 141.6 billion won yet the operating loss widened to 106.5 billion won (operating margin -75.2%), with a net loss to owners of 91.6 billion won and operating cash flow of -124.5 billion won, meaning R&D and trial costs grew faster than revenue.

Against 2023 revenue of 34.1 billion won (operating loss 80.8 billion won) and 2022 revenue of 33.4 billion won (operating loss 50.4 billion won), revenue has quadrupled while the absolute loss has grown larger.

Quarterly, revenue of 41.4 billion won with a 23.2 billion won operating loss in the third quarter of 2025 deteriorated sharply to revenue of 16.0 billion won and a 73.1 billion won operating loss in the fourth, partly recovered to revenue of 35.9 billion won and a 37.4 billion won operating loss in the first quarter of 2026, then swung to revenue of 5.5 billion won, an operating loss of 72.0 billion won and a net loss to owners of 68.1 billion won in the second quarter of 2026.

Summing the latest four quarters (third quarter 2025 through second quarter 2026) gives revenue of 98.8 billion won, an operating loss of 205.7 billion won and a net loss to owners of 181.4 billion won.

With quarterly revenue ranging from single-digit to tens of billions of won, no single quarter can be read as a trend, and the swing between profit and loss depends on residual upfront recognition and milestone timing.

On the balance sheet, total equity at end-2025 was 541.1 billion won (including 33.5 billion won of non-controlling interests) against total liabilities of 160.7 billion won, a debt-to-equity ratio of 29.7% versus 19.9% a year earlier—higher, but still low.

The appearance of non-controlling interests, absent through end-2024, points to a change in the consolidation scope, the details of which should be checked in the annual report footnotes.

Industry analysis

ADCs are widely cited as the fastest-growing modality in oncology. Market commentary points to the ADC market growing at a 27% compound annual rate to 45.9 billion dollars by 2030, alongside a surge in R&D demand from global pharma and Asian biopharma. Large deals continue.

Pfizer in-licensed global rights to a HER2 ADC from China's RemeGen in a deal totaling 4.3 billion dollars, and competition to secure follow-on HER2 ADCs intensified after Enhertu demonstrated efficacy even in HER2-low patients. Yet the rising bar set by first movers is a burden for followers.

As Enhertu moves into earlier lines, the decisive question for follow-on HER2 ADCs becomes whether they can produce fresh responses in patients already treated with it. Validation risk on newer targets is also visible.

On B7-H4, earlier competing pipelines disappointed: in January 2025 Mersana reported a 23% objective response rate at an intermediate dose, and in February that year Pfizer discontinued its B7-H4 ADC trial. In TROP2, already-marketed drugs failed to secure strong results in non-small-cell lung cancer.

On positioning, Hana Securities noted that whereas Chinese pipelines with clinical data were previously favored, interest has shifted toward candidates with differentiated platforms and novel linker and payload technology.

The industry backdrop is therefore supportive, but individual datasets are what widen the gap between companies.

Outlook

The confirmed calendar is concentrated in the second half. LCB14, which Fosun Pharma is developing for HER2-positive breast cancer, is expected to complete China Phase 3 and file for approval within the year; if it is commercialized locally, LigaChem would receive a percentage of sales as royalties.

Globally, Iksuda plans to complete the Phase 1b study of IKS014 (LCB14) in the second half of this year, and certain contracts with Iksuda and CStone include profit-sharing on third-party licensing, so a sublicense would allow LigaChem to collect part of the upfront.

For LCB84, Phase 1 completion and Phase 2 entry are expected in 2026, and if Janssen exercises its sole-development option before Phase 2 ends, the contract allows a 200 million dollar milestone.

On cash inflows, Ono Pharmaceutical disclosed on June 8, 2026 that patient recruitment had begun for the Phase 1 study of ONO-7429 (LCB97), and because development milestones typically trigger on first-patient dosing, receipt within the year has been flagged as likely. In-house programs are advancing too.

LCB02A, targeting CLDN18.2, received global Phase 1/2 clearance in May 2026 and targeted first-patient dosing in the third quarter of 2026. LNCB74, the B7-H4 ADC, is in Phase 1 in advanced solid tumors with interim Phase 1 data slated for the second half of 2026.

Partner SOTIO's LRRC15 ADC SOT106 obtained US orphan drug designation, filed an IND in August, and plans first patient enrollment in the fourth quarter of 2026.

On funding, the disclosed spending plan is 90 billion won in 2026, 180 billion won in 2027 and 230 billion won from 2028, with the company stating it already held about 450 billion won in cash.

At the Global R&D Day in July 2026, management set out a goal of becoming a leading global ADC biotech and securing 20 ADCs within five years, backed by about 1 trillion won of investable funds and open innovation.

Valuation

PER

—

PBR

8.4×

ROE

-37.3%

EPS

-₩4,669

BPS

₩10,930

Dividend per share

₩0

The latest four quarters are cumulatively loss-making, so earnings-based multiples cannot be computed, and there is no dividend on the confirmed financials.

That pushes market reference points toward net-asset-based multiples and sum-of-the-parts or rNPV pipeline valuations; on a net-asset basis the shares trade at a substantial premium.

Note also that once the 500 billion won convertible preferred share and convertible bond issue approved in June 2026 is paid in, total equity rises, which works in the direction of lowering net-asset-based multiples.

Brokerages largely take the pipeline-sum approach: Hana Securities on August 5, 2026 maintained a Buy rating and a 220,000 won target price, saying corporate value was not sufficiently reflected in the share price even though four more pipelines had entered the clinic versus a year earlier. iM Securities, in a May 2026 report, presented an enterprise value of 7.48 trillion won, comprising 5.20 trillion won of pipeline value and 2.28 trillion won of platform value.

All such assessments assume clinical data and licensing success materialize, and the same frameworks work in reverse if data fall short.

PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04

Bull factors

Potential for a first commercial product and royalty stream

LCB14, being developed by Fosun Pharma in China, is at a stage where Phase 3 completion and a new drug application within the year are expected. If it is commercialized locally, the company would gain a structure that collects a percentage of sales as royalties.

LCB14 also won the top award in the 'Most Promising ADC to Watch' category at the World ADC Awards in November 2025. The point to watch is whether recurring revenue can be added to a mix that has relied on upfronts and milestones.

Long-term policy capital widens the in-house late-stage option

In June 2026 the board approved a 170 billion won private convertible bond and a 330 billion won third-party allotment of convertible preferred shares, attracting the National Growth Fund's first direct investment in a biotech.

Korea Development Bank subscribes 165 billion won of preferred shares and 85 billion won of bonds, with Pan Orion and a third financial investor taking 125 billion won each.

Whereas the strategy previously centered on monetizing assets via licensing at a certain stage, the company says the raise lets it carry priority pipelines through Phase 2 and 3 in-house. Supporters frame this as expanding negotiating options relative to early licensing.

Rights consolidation plus a dense event calendar

The August 2026 transition and continuation agreement with NextCure gives the company sole decision-making authority over LNCB74's development, approval and commercialization, plus third-party licensing rights. Interim Phase 1 results for that program are scheduled for the second half of 2026.

Hana Securities said clinical progress from major pipelines including IKS04, CS5001 and J&J's TROP2 ADC should be confirmed in the second half. With multiple partners reporting in a short window, the sample available to test platform reproducibility grows.

Bear factors

Discontinuous revenue and widening losses

Second-quarter 2026 revenue collapsed to 5.5 billion won from 35.9 billion won a quarter earlier, while the operating loss for that quarter reached 72.0 billion won. In 2025, revenue rose to 141.6 billion won but the operating loss widened roughly fivefold to 106.5 billion won from 20.9 billion won in 2024.

Operating cash flow swung from a 78.5 billion won inflow in 2024 to a 124.5 billion won outflow in 2025. In periods when residual upfront recognition runs out, a revenue gap and rising costs can arrive together.

Licensing drought and event-slippage risk

Mirae Asset Securities noted that while at least one ADC platform or pipeline licensing deal had been signed every year since 2019—with deals landing in December for four straight years from 2020 to 2023—there was no out-licensing in 2025 and the timing remains unclear. iM Securities observed that agreements signed after the 2024 Ono Pharmaceutical deal were all inbound technology in-licensing by the company. With revenue heavily dependent on licensing, a prolonged absence of new deals pushes back any profit recovery.

Potential dilution and a rising competitive bar

If the new convertible preferred shares and bonds all convert, share count rises by roughly 9%, prompting dilution concerns; the company said the issue price was set without a discount and conversion rights are exercisable only from 2028, limiting near-term overhang.

The refixing floor is capped at 80% of the initial conversion price. On top of that, Enhertu extended progression-free survival by about 14 months over the prior first-line standard, raising the bar that follow-on HER2 ADCs must clear, which increases development difficulty.

Risk factors

Clinical failure and safety risk

Market commentary flags volatility tied to trial outcomes and whether licensing materializes as key risks, adding that safety issues cannot be ruled out given the nature of ADCs. In B7-H4, a competitor's Phase 1 data came in below expectations and that company's shares fell sharply on the day of disclosure.

With multiple readouts due in the second half, two-way volatility around results is high. Small early-stage sample sizes also leave interpretation uncertain.

Cash burn and cost structure

Operating cash flow was a 124.5 billion won outflow in 2025, and quarterly operating losses in the hundreds of billions of won per year continued into the first half of 2026.

The Korea IR Service's research center said operating losses should persist as more pipelines enter the clinic and R&D expands, a burden on near-term profitability.

A company official likewise said this is a period requiring continued large-scale R&D investment to expand global trials and strengthen follow-on pipelines. Even with funds raised, longer trial timelines could revive discussion of additional funding.

Partner dependence and factors outside control

Development control over many core assets sits with partners. For LCB14, Fosun Pharma holds China rights and Iksuda holds global rights, so trial execution lies outside the company.

The company has described Iksuda and CStone as firms oriented toward third-party licensing rather than running late-stage trials and commercialization themselves. Partner strategy shifts, reprioritization and regulatory review delays are variables the company cannot control. Some contracts keep milestone terms confidential, reducing visibility on the timing and size of inflows.

What to watch next

September to October 2026
The in-house pipeline LCB02A (CLDN18.2) received global Phase 1/2 clearance in May 2026 and targeted first-patient dosing in the third quarter of 2026. Check disclosures and press releases for whether first dosing occurred on schedule or slipped.
Mid-November 2026
The third-quarter 2026 report is due. Watch whether revenue—down to 5.5 billion won in the second quarter—recovers on milestone recognition, the size of the quarterly operating loss, the pace of R&D spending, and equity and cash after the July payment of the capital raise.
Fourth quarter 2026
Key items are Fosun Pharma's completion of the LCB14 China Phase 3 and its new drug application and Iksuda's completion of the IKS014 Phase 1b. Partner SOTIO plans first patient enrollment for SOT106 in the fourth quarter of 2026.
During the second half of 2026
Interim Phase 1 results for LNCB74 (B7-H4 ADC) are scheduled, allowing an early read on safety and efficacy signals. Also worth tracking is how follow-on licensing discussions evolve after August's move to sole development rights.
December 2026 to January 2027
The biggest items are LCB84's Phase 1 completion and Phase 2 entry and whether Janssen exercises its sole-development option, which would allow a 200 million dollar milestone. Also check whether licensing discussions convert into contracts through the year-end conference and early-year healthcare conference season.

Overall view

LigaChem Biosciences is a classic platform biotech whose revenue is governed by the recognition of licensing upfronts and milestones, and the confirmed financials show exactly that.

In 2024, revenue of 125.9 billion won came with net profit to owners of 7.8 billion won, but in 2025 revenue rose to 141.6 billion won while the operating loss widened to 106.5 billion won and operating cash flow turned negative.

Into 2026 the swings continued, with revenue of 35.9 billion won in the first quarter and just 5.5 billion won in the second, alongside quarterly operating losses in the tens of billions of won.

That said, there have been changes on funding and rights: a 500 billion won raise tied to the National Growth Fund was approved in June 2026, and sole development and licensing rights to LNCB74 were secured in August 2026.

The second half is dense with outcome-dependent events, including the China Phase 3 completion and filing for LCB14, Iksuda's Phase 1b completion and LCB84's Phase 1 completion and Phase 2 entry.

The bull case rests on a first commercial product with royalties, a dense data calendar and secured long-term capital; the bear case rests on discontinuous revenue, widened losses and cash burn, potential dilution and a rising bar set by first movers.

This material is for information purposes only and contains no buy or sell recommendation to be relied upon for investment decisions.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.