[Interview] Nahanik, CEO of Canary Bio, "Hyunju's level is excessive... 'Oregovomab' will be a game changer"

Interview with Canaria Bio (formerly Duol Mulsan) CEO
Surged over 50,000% since trading on K-OTC market last September
Market cap nears 25 trillion won, becoming a controversial stock

Nahaniik, CEO of Canary Bio

[Asia Economy Reporter Minji Lee] ‘Korean version of GameStop’ ‘Market cap of 25 trillion won’ ‘Stock price surges 50,000%’

These are the phrases recently attached to Canaria Bio (formerly Duol Mulsan). Canaria Bio, which used to sell automotive interior and exterior materials, suddenly saw its stock price soar over 50,000% in the unlisted (K-OTC) market after news broke that it was developing a new drug for ovarian cancer. Its market capitalization grew so large that it surpassed Celltrion and KB Financial in an instant. Moreover, unprecedented split mergers led investors who shorted the parent company to have to repay with the skyrocketing Canaria Bio shares, placing the company at the center of controversy.

In a recent interview with Asia Economy, CEO Nah Han-ik immediately expressed regret about the situation, saying, "It is unfortunate." He added, "I hope the market focuses on the infinite growth potential of ‘Oregobomab,’ a candidate drug for ovarian cancer treatment, but right now, excessive attention is focused on the stock price and short selling." He also acknowledged, "Personally, considering the fundamentals (company value), I admit that the stock price has risen excessively."

Oregobomab is the company’s core pipeline drug targeting ovarian cancer. CEO Nah claims that Oregobomab could be a ‘game changer’ in the ovarian cancer treatment market. Ovarian cancer is known as one of the most threatening cancers to women, with a relative survival rate of only 62.5%, but in Phase 2 clinical trials, Oregobomab extended progression-free survival by 30 months. CEO Nah said confidently, "Herceptin, a breast cancer drug, became a representative targeted therapy because it significantly extended patient survival compared to existing treatments, and the company that developed it became a global pharmaceutical giant (Big Pharma). Expectations for Oregobomab are high." The drug is currently in Phase 3 clinical trials, recruiting patients at 126 sites across 13 countries worldwide.

The company estimates Oregobomab’s maximum sales at 11 trillion won (expected launch year 2026). This estimate assumes Oregobomab captures 66% of the standard treatment market, excluding ovarian cancer mutation symptoms. The reason for expecting tens of trillions in sales from the new drug development is the company’s confidence in pursuing licensing agreements rather than the technology transfers typically done by domestic pharmaceutical companies. Usually, technology transfers involve receiving money during Phase 1 or Phase 2 clinical stages in exchange for technology rights. Licensing agreements mean producing finished products at the company’s own factories and selling them through country-specific contracts. CEO Nah explained, "In past cases, even if technology transfers were made, they did not lead to drug approval, and even if successful, Big Pharma took the larger share, so we are focusing on licensing agreements. Even if Phase 3 results show progression-free survival shorter by at least 6 months than Phase 2, sales would still reach 7.3 trillion won."

However, the market views the current company valuation as excessively high, even considering the expectations for the new drug. Currently, Duol Mulsan’s price on the K-OTC market is 144,000 won. Since trading began on September 13 last year (535 won), it has risen 26,815%. The 52-week high price is 300,000 won, which means the increase is 56,000% based on that. At the current price, the market capitalization is 13.98 trillion won, surpassing large corporations such as Samsung Electro-Mechanics (12.5 trillion won) and SK Telecom (12 trillion won).

Meanwhile, the market’s suspicion toward the company is growing as the parent company’s controversial split merger process comes under scrutiny. To understand the split, one must first look at OQP (now Diarc), a KOSDAQ-listed company. Last March, the company was denied an audit opinion by Dasan Accounting Firm due to insufficient audit evidence regarding Oregobomab’s appropriateness. Subsequently, the company split into three entities: OQP Bio, Diarc, and Duol Mulsan Holdings. At that time, Duol Mulsan became a subsidiary of Duol Mulsan Holdings. Then, Duol Mulsan changed its signboard to a bio company after acquiring Oregobomab-related IP from the parent company’s bio subsidiary OQP Bio through its subsidiary MHC&C, and recently merged with the parent company Duol Mulsan Holdings.

Regarding this, CEO Nah emphasized, "We had no choice but to decide on the split to save Oregobomab." He added, "Groups that shorted OQP are raising issues about the split merger itself, but it was legally reported to the Financial Supervisory Service and carried out accordingly. Also, the bio division, which was denied an audit opinion by the accounting firm last year, was recognized as an asset by the court, so I hope people will drop their uncomfortable views."

Finally, CEO Nah said, "It is common for the value of new drugs to be reflected in stock prices in advance for bio companies, but I think the current stock price surged excessively as some investors bought it like a ‘meme stock.’ However, if Oregobomab is recognized by the market, I am confident that the current stock price level can be justified."

This content was produced with the assistance of AI translation services.