DTNCRo Completes Securities Registration Statement Submission... "Subscription Next Month"

[Asia Economy Reporter Chunhee Lee] Clinical trial contract research organization (CRO) DTNCRO is preparing for an initial public offering (IPO).

DTNCRO announced on the 4th that it submitted its securities registration statement on the 30th of last month. It has appointed Kiwoom Securities as the lead manager and aims to list within this year.

DTNCRO promotes itself as a 'full-service' CRO through the convergence of bio and IT technologies. It comprehensively handles all clinical-related demands, from non-clinical efficacy and toxicity tests to phase 1 clinical trials and regulatory consulting. This approach allows client companies to significantly reduce costs and development schedules compared to conducting non-clinical, regulatory approval, and phase 1 clinical trials separately.

The company’s strategy for differentiation is based on the fact that its parent company is DTNC, an information and communication business-based certification service provider. DTNC holds 53.5% of DTNCRO’s shares. This background enabled the independent development of the SEND Solution and the Smart Clinical Trial platform (STC).

The SEND Solution facilitates easy and rapid conversion of domestic non-clinical data into the electronic document format 'SEND (Standard for Exchange of Nonclinical Data)' required when submitting to the U.S. Food and Drug Administration (FDA). STC is a platform developed to reduce human errors and increase accuracy by automatically inputting clinical trial information obtained from trial subjects into the e-CRF in real time, thereby reducing clinical trial duration and costs. It is currently being expanded to medical institutions centered around Kwangmyeong Hospital of Chung-Ang University.

DTNCRO has shown balanced growth across clinical, non-clinical, and analytical CRO business sectors, maintaining a growth trend in performance. It has recorded a high average annual sales growth rate of 76% over the past three years and achieved an operating profit margin of about 15% as of last year.

The company expects the efficacy evaluation center, scheduled to start operations early next year, to become a significant cash cow. After listing, it plans to actively respond to sales growth by expanding production capacity and personnel at each center.

Park Chaekyu, CEO of DTNCRO, stated, “We plan to grow into a comprehensive clinical platform integrating BT and IT and expand not only domestically but also into Japan, the United States, Europe, and other global markets.”

A total of 1.4 million shares will be offered, with a public offering price range of 22,000 to 25,000 KRW. The offering price will be finalized through demand forecasting over two days on the 26th and 27th, followed by a general subscription on the 2nd and 3rd of next month. The expected market capitalization after listing, based on the public offering price range, is approximately 138.9 billion to 157.8 billion KRW.

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