Former Asset Management CEO Enters Biotech at 60, Takes PMEC—Built Over Eight Years—Toward an IPO [fn Market Watch]

[Financial News]  A first-generation former asset management CEO who spent 27 years in the securities and asset management industries chose biotech as his second arena after turning 60. He is Lee Yong-min, CEO of Medibio Lab.
Lee entered the securities industry as part of the second open recruitment class at Korea Securities Finance Corporation. After helping establish Cheil Investment Trust, he served as a division head at CJ Securities and CJ Asset Management before becoming CEO of CJ Asset Management. He left the capital markets in 2003 and moved into building a company of his own in 2010.
Medibio Lab's key asset, which will determine the company's valuation, is Propolis and Mangosteen Extract Complex (PMEC), a compound ingredient combining propolis extract with mangosteen fruit peel extract. After roughly eight years of R&D and human application studies, it received individual recognition as a functional ingredient for gum health.
Speaking to Financial News on the 25th, Lee said, "The company's greatest asset is PMEC," adding, "We plan to pursue an initial public offering (IPO) in 2028 after building meaningful business results in 2027."
■PMEC Endured for Eight Years Despite an Initial Clinical Trial FailureThe development of PMEC began with Prolak, a propolis product sold by Medibio Lab. While combining mangosteen with propolis, Lee focused on the potential anti-inflammatory properties of mangosteen peel extract.
The early development process, however, was far from smooth. Although in vitro and animal studies confirmed its potential, the first human application study failed to produce the expected results. After four years of research, the project was at risk of returning to square one. Instead of giving up, the company adjusted the dosage and study design and conducted additional human application studies at Ajou University Dental Hospital and The Catholic University of Korea, Seoul St. Mary's Hospital. It ultimately secured functional recognition after roughly eight years.
Lee stated, "It was bleak when the first clinical trial failed, but it was not a task we could abandon," adding, "We had confirmed the potential in the in vitro and animal study results, so we chose to try again."
Lee's management principles are closely tied to his capital market career. Rather than raising large amounts of outside funding to expand from the R&D stage onward, he generates cash through existing businesses and invests in research within manageable limits. He explained, "We have also conducted R&D within the company's profitability range and kept research personnel, who become fixed costs, to a minimum," adding, "We will pursue pharmaceutical development only to the extent that a failure would not affect the company's survival."
The company plans to expand PMEC's applications in stages. Starting with health functional foods, it aims to move into quasi-drugs and pharmaceuticals, oral-care products for companion animals, and feed additives for farmed fish. It has also secured a patent for a mangosteen extract-based composition for root canal irrigation and filling.
■After Building Results Through Product Sales, He Takes Aim at a 2028 IPOThe company has recently broadened its external growth strategy as well. Its sales approach is expanding from a pharmacy-centered model to online channels. In addition to its own online store, Medibio Lab plans to broaden distribution through home shopping, online specialty retailers, and door-to-door sales. Over the long term, it aims to bring the revenue share of pharmacies and other channels to roughly 2:8.
Accordingly, after completing the process of changing its raw-material producer, Medibio Lab has set a target of KRW 25 billion in revenue and KRW 10 billion in operating profit in 2027, driven primarily by PMEC products.
The next step is an IPO. Based on its 2027 results, the company plans to pursue a listing in 2028. Before then, it is also considering funding through institutional investors and policy-backed growth funds.
Its strategy differs from that of biotech ventures that first seek to raise their valuations through technology exports or large-scale investments. Medibio Lab plans to generate cash by selling products, reinvest it in R&D, and enter the stock market with operating results in hand.
Lee, who took his first step into the capital markets as a Korea Securities Finance Corporation employee in 1976, is preparing to return to the stock market nearly half a century later—this time as the CEO of a company seeking to become an investment target.
Lee emphasized, "The most important thing in life and business is trust," adding, "Based on PMEC, we will expand our business from health foods into quasi-drugs, pharmaceuticals, and other areas."
[email protected] Kim Kyung-a Reporter