The global anticancer new drug "Regrazar," developed by the biotech company Genosco, has ultimately failed to clear the listing threshold of the Korea Exchange. It has been confirmed that the company received a "disapproval" notification from the Market Committee, which is considered the final hurdle in the preliminary listing review of the Korea Exchange.
According to the financial investment industry on the 22nd, the KOSDAQ Market Division of the Korea Exchange held a Market Committee meeting and decided against listing Genosco. Genosco had already received a disapproval notification from the KOSDAQ Market Division Listing Committee on the 11th.
Typically, corporations seeking listing withdraw their application after receiving a disapproval notification from the Listing Committee; however, Genosco opted for a review by the Market Committee without withdrawing the application. It aimed for approval of the listing review from the Market Committee, which oversees the Listing Committee.
The disapproval decision by the Market Committee appears to have been influenced by the controversy of 'revenue overlap and duplicate listing' with its parent company Oscotec. Genosco and Oscotec are generating revenue from the lung cancer treatment new drug substance, Razeritinib, which has been transferred to Yuhan Corporation.
The listing of Genosco on KOSDAQ has become difficult for the time being. While there is still the option of an appeal, there is a high likelihood that the outcome will not change. This is largely due to considerable backlash, as Oscotec shareholders have begun legal action over the duplicate listing controversy.
Meanwhile, Genosco has kept open the possibility of listing on the Nasdaq if the KOSDAQ listing ultimately fails, but there are also observations that this would not be easy. The timeline for the recovery of investment funds by MERITZ Securities, which had been a financial investor in Genosco, has also been pushed further away.