In May 2024, South Korean unlisted healthcare companies secured approximately $60.1 million in funding, marking a significant rebound from the lowest funding performance recorded in April this year. The unlisted bio and healthcare investment market experienced mixed trends amid various complex changes in May, but a potential downturn was swiftly averted as major corporations initiated a rush of investments.

According to data compiled and analyzed by Hit News on June 16th, eleven unlisted healthcare companies raised a total of $60.1 million in May 2024. This represents a nearly twofold increase in both the number of companies and the scale of funding compared to the same period last year (seven companies, $32.2 million), demonstrating significant growth.

This rebound follows a dip in April 2024, which saw the lowest amount of funding for the year at $41.2 million. Although the number of companies securing funds slightly decreased, notable investment achievements contributed to this turnaround. The overall funding trend has returned to an upward trajectory, raising expectations for future investment outcomes.

Several healthcare companies secured over $14.5 million in May. Kakao Healthcare, a subsidiary of the major corporation Kakao, raised $21.7 million, while Meditech secured $14.5 million. This contrasts with May of the previous year when significant funding achievements were primarily seen from companies like Cellmeat, which raised $12.6 million in Series A funding, and BaroPharm.

Kakao Healthcare was a standout, securing additional funding after two years and boosting its valuation to $109 million. The company, still in its early stages, has established a portfolio of three business ventures, including continuous glucose monitoring (CGM) and telemedicine. Notably, the parent company solely provided the $21.7 million investment without any external investors.

Meditech, which developed an AI-based motorized endoscope considered one of the best in the world, followed closely. The company attracted significant attention by securing investments from prominent venture capital firms such as Atinum Investment, Smilegate Investment, and Hana Ventures.

Baz Biomedic secured $7.2 million in funding by attracting BNH Investment, a venture capital firm specialized in biotechnology. Baz Biomedic has launched commercial products such as CureJet and NovoJet, needle-free drug delivery devices developed using solenoid technology. Both Meditech and Baz Biomedic classified this investment round as Series B.

Bio Square, a subsidiary of HLB Panagene under the HLB Group, received a $2.9 million infusion from its parent company. In May this year, HLB received a Complete Response Letter (CRL) from the U.S. FDA regarding the approval of a combination therapy of Rivoceranib and Camrelizumab for the first-line treatment of liver cancer. The overall decline in the KRX Healthcare Index in May is also linked to the drop in stock prices of major listed companies, including HLB, following the receipt of the CRL. Despite this, HLB remains confident in the drug's approval and continues to invest in its subsidiaries and affiliates. Bio Square aims to establish new momentum for the HLB Group in the diagnostics sector.

A market insider commented, "The bio and healthcare sector has recently undergone several turning points and needed new momentum. The involvement of major corporations is helping to navigate through various crises. Given the overall adjustment in corporate valuations, this trend is likely to continue for some time."