Precision medicine firm MBD: “Automating cancer drug testing ... targeting overseas markets through an IPO”

[Financial News] “We are the only company in the world to have developed everything from cell culture and automated equipment to predictive algorithms in-house and applied it to commercialized cancer drug testing.”
At an IPO press conference held in Yeouido, Seoul, on the 9th, MBD CEO Koo Bo-seong described the company’s testing automation capabilities, built on its proprietary technology.
Founded in 2015, MBD provides laboratory equipment, new-drug efficacy evaluations, and cancer drug sensitivity testing services based on its 3D cell-culture automation technology. Its in-house-developed ASFA platform automates the process from cell preparation and dispensing small amounts of liquid to culturing and analysis. It is designed to reduce errors from manual work and sample loss while growing cells in an environment similar to the human body.
Its businesses comprise sales of automated equipment and consumables, contract research (CRO) for pharmaceutical companies to evaluate new-drug efficacy, and OncoSensi, a cancer drug sensitivity testing service. OncoSensi tests multiple cancer drugs on cancer cells collected from patients and analyzes their responses using its proprietary algorithm to help select treatments suited to each patient.
One strength of the business model is that equipment sales generate recurring revenue. The company supplies equipment along with dedicated consumables, reagents, and analytical software, generating related revenue as customers continue to conduct experiments. Last year, 72.7% of total revenue came from automated equipment and dedicated consumables.
The company also cites the way its equipment and testing services expand the business base for one another as a competitive advantage. It uses automated equipment to improve the consistency of test results and applies data gathered during testing to new-drug efficacy evaluations. MBD has 45 partner hospitals in South Korea and at least 13,000 cumulative clinical samples.
After listing, MBD plans to expand overseas supplies of automated equipment while increasing the range of cancers covered by OncoSensi and the number of medical institutions using the service. “The key product we plan to bring to market early next year is laboratory automation equipment,” CEO Koo said. “I believe we can turn profitable within the next two years.” The strategy is to secure revenue from equipment and CRO services in the short term and expand cancer drug testing services over the medium to long term.
In the United States, MBD has established a business model in which it provides testing services through local partner Kaia Tech and receives royalties equal to 20% of testing revenue. Rather than building its own testing facilities there, the company plans to reduce the cost of entering the market by using the infrastructure of an existing operator. It is also pursuing overseas sales through the distribution networks of global equipment companies.
MBD plans to raise 19.2 billion to 23.4 billion won through the offering and invest the proceeds in facility expansion, research and development, and clinical trials to strengthen the supply base for its automated equipment and testing services. It also plans to increase its sales and marketing staff. R&D will focus on upgrading its equipment lineup and expanding the range of cancers covered by OncoSensi.
MBD will offer 2 million shares, all newly issued. The indicative offering price range is 9,600 to 11,700 won per share. It conducted bookbuilding with institutional investors from the 2nd to the 6th and will accept subscriptions from retail investors on the 12th and 13th. Hana Securities is the lead underwriter.
[email protected] Lee Jeong-hwa Reporter