Oscotec Drives Genosco KOSDAQ Listing Amid Concerns
Genosco’s listing seen as vital for funding and R&D continuity, but faces opposition from shareholders.
During an investor relations (IR) session on November 25 in Yeouido, Seoul, Jung-geun Kim, Co-CEO of Oscotec, stressed the critical need for the KOSDAQ listing of its U.S. subsidiary Genosco. “If our U.S. subsidiary Genosco fails to go public on KOSDAQ, we will need to seek additional funding. It is extremely challenging for a biotech company that has failed to list to secure investments. Moreover, we cannot prevent the mass departure of top-tier researchers currently working at Genosco if the listing does not materialize,” said Kim.
Kim addressed allegations of “split-off listings,” underscoring the importance of the move. Genosco, co-led by Jung-geun Kim and Tae-young Yoon, also shared updates on its R&D activities and strategies for enhancing corporate value during the event.
Criticism preceded the session, with some claiming Oscotec was pursuing the listing unilaterally and disregarding shareholder interests. Responding to these claims, Kim clarified, “Genosco operates under U.S. corporate law, which means Oscotec, as a major shareholder, cannot interfere in its management activities.”
Kim highlighted that Genosco’s KOSDAQ listing is crucial for securing funding, particularly in the competitive biotech landscape. “Approximately 3,800 biotech firms are concentrated in Boston. Without stock options for Genosco researchers, the likelihood of them moving to other companies significantly increases,” he said.
He further warned, “If the listing does not happen, attracting investments will be impossible, and if our researchers leave, Genosco will be reduced to an empty shell. In such a scenario, the company would be relegated to a mere financial entity relying solely on royalties from Leclaza.”
Despite the management’s push, shareholders expressed concerns. Young-gap Choi, head of the Oscotec Shareholders’ Alliance, stated, “The alliance is willing to collaborate with secondary shareholders, private equity funds, or any other organizations going forward. We plan to exercise our influence at future shareholder meetings.”
Another shareholder remarked, “For small KOSDAQ-listed companies, the CEO’s integrity is critical. Losing credibility can result in losing investment opportunities from pension funds and foreign investors. Shareholders are concerned that Genosco’s listing could undermine the asset value of Oscotec’s shareholders.”
In response, Kim reiterated the potential benefits of Genosco’s listing. “If Genosco goes public, Oscotec’s consolidated financial statements will improve. Additionally, an increase in Genosco’s market capitalization will boost the value of its stake.”
Kim also announced plans to aggressively promote Oscotec and engage in more active IR activities starting in 2025, alongside updates on Oscotec’s key clinical pipelines, including seviroplenib, denpibontinib, and ADEL-Y01 (co-developed with ADEL), as well as the company’s mid- to long-term vision.