This article was posted on the ChosunBiz MoneyMove (MM) site on May 26, 2025 at 10:59 a.m.
Bridge Biotherapeutics, a domestic drug development company listed on the KOSDAQ, is selling its management rights by attracting external funds. It is presumed that the failure of its key pipeline, the pulmonary fibrosis treatment 'BBT-877,' in global phase 2 clinical trials was a decisive factor.
According to investment banking (IB) industry sources on the 26th, Bridge Biotherapeutics is currently seeking to secure hundreds of millions of won in funding from an investment firm. It is known that the company will not sell its existing largest shareholder's equity but will inject funds through a third-party allotment capital increase structure. The goal is to raise capital by issuing new shares to bring external funds into the company, aiming to escape the risk of delisting.
A source primarily involved in KOSDAQ mergers and acquisitions (M&A) noted, "It is true that the largest shareholder of Bridge Biotherapeutics is pursuing the sale of management rights," adding, "Since it has not been listed for long, there should be no potential insolvency issues, and the fact that it has received certification as an innovative pharmaceutical company means there are no immediate revenue requirements for maintaining listing is positive." The source continued, "However, the amount of funds that need to be injected may be larger than expected, and ultimately, it is a burden to have to reattach a profitable business."
The reason Bridge Biotherapeutics is seeking to sell its management rights is due to the increased risk of delisting following the failure of clinical trials for its new drug candidate. Previously, in March, Bridge Biotherapeutics disclosed that it had met the grounds for designation as a management item due to continuous business losses before corporate tax deductions (losses exceeding 50% of equity) for more than two occasions over the last three years. If it fails to resolve the loss ratio requirement by the end of March next year, it will be subjected to a substantive examination of listing qualifications regarding potential delisting.
Initially, Bridge Biotherapeutics had planned to transfer the new drug candidate for idiopathic pulmonary fibrosis, BBT-877, to resolve the reasons for delisting. Idiopathic pulmonary fibrosis is a rare disease that causes the lungs to harden and can lead to death in severe cases. After acquiring BBT-877 from LigaChem Biosciences (formerly LegoChem Biosciences), Bridge Biotherapeutics transferred the technology to the German pharmaceutical company Boehringer Ingelheim for 1.46 trillion won in 2019. However, the following year, Boehringer Ingelheim returned the rights due to potential toxicity issues, and since then, Bridge Biotherapeutics has been pursuing internal development.
However, on 14th of last month, disappointing results emerged from the phase 2 trial of BBT-877, pushing the company into a crisis. The failure to secure the efficacy of BBT-877 made it difficult to obtain funds through technology transfer. The stock price of Bridge Biotherapeutics, which had soared above 10,000 won due to expectations for new drug development, has plummeted to the 700 won level following the announcement of the clinical failure.
Lee Jung-kyu, CEO of Bridge Biotherapeutics, stated in a statement posted on the company's website on the 21st of last month, "We will actively pursue strategic alliances and attract financial investments without being tied to management rights," adding, "We aim to achieve a scale of capital that meets the requirements for maintaining listing by the end of the year."