'From Non-Clinical to Clinical' Korea's Only 'Full-Service' CRO Challenges IPO

DT&CRO Covers Entire New Drug Development Process
"Advantages in Schedule Reduction, Cost Savings, and Security"

Emphasizes Synergy with Parent Company DT&C
Combines with IT Solutions like SEND and STC Platform

Funds Raised through IPO to Be Used for New Growth Engines
Establishment and Expansion of Efficacy, Nonclinical, PK·PD Centers

On the 25th, Park Chaekyu, CEO of DT&CRO, is speaking at a press conference held in Yeouido, Yeongdeungpo-gu, Seoul. / Photo by Lee Chunhee

[Asia Economy Reporter Lee Chun-hee] DT&CRO, a clinical research organization (CRO) offering a 'full service' that covers the entire new drug development process from non-clinical to clinical stages, has announced its intention to go public (IPO).

On the 25th, ahead of the demand forecast, DT&CRO CEO Park Chae-kyu held a press conference in Yeouido, Yeongdeungpo-gu, Seoul, stating, "There is currently no full-service CRO like ours in Korea," and added, "We expect the demand for full-service CROs that can accumulate and analyze existing data from non-clinical to clinical stages and utilize IT technology to increase in the future," expressing his ambition for the IPO.

DT&CRO continues to emphasize that it is the only domestic CRO capable of covering the entire preclinical to clinical phase, from non-clinical efficacy and toxicity to Phase 1 clinical trials on humans. Vice President Sun Deok-seong explained, "There are several advantages for clients through full service," adding, "Since clients do not have to go through multiple CROs at each stage, the schedule is shortened and costs are reduced significantly, and there is also a strong advantage in security, which is inevitably sensitive during the new drug development process."

CEO Park repeatedly mentioned that DT&CRO is a continuously growing company. He said, "Since achieving a significant revenue of 10.5 billion KRW in 2019, we have maintained a compound annual growth rate (CAGR) of 76.2% until last year," and added, "In March last year, we resolved issues related to non-clinical efficacy through the acquisition and merger (M&A) of EBio."

Overview of DTNCRO's 'SEND Solution' (Photo by DTNCRO)

DT&CRO also highlighted the advantage of its parent company being an IT firm, DT&C. This has enabled them to develop their own IT platform, 'SEND Solution,' and the bioequivalence clinical 'STC Platform,' combining IT and BT to build DT&CRO's unique capabilities.

The SEND in SEND Solution refers to the electronic format for submitting non-clinical data to the U.S. Food and Drug Administration (FDA) during Investigational New Drug (IND) applications and new drug approvals. DT&CRO has developed an independent solution that allows direct submission to the FDA. CEO Park explained, "Simply put, it is an electronic documentation platform, but without such a platform, data conversion is difficult," adding, "While using overseas services might be convenient, it is hard to accumulate data as an asset, so we started developing it independently in 2018." He further noted, "We are currently using the SEND platform for FDA-related services, and about 10 contracts have been confirmed."

Another service DT&CRO promotes is the STC platform. STC stands for Smart Trial Center, a platform that automates everything from clinical data entry to management and report generation. CEO Park pointed out, "Currently, all clinical data is manually processed and then entered electronically afterward," adding, "Human errors inevitably occur, and a lot of manpower is required, resulting in high time and cost." He said, "As an IT major, I found it hard to understand why it was done this way," and explained, "After about two years of development, it is now actually being used at Kwangmyeong Hospital of Chung-Ang University." CEO Park added, "Since neither clients nor CROs need human intervention and data accuracy is ensured, we believe this can change the clinical trial paradigm."

Overview of DTNCRO's 'STC Platform' (Photo by DTNCRO)

CEO Park also detailed the use of funds raised through the IPO. He revealed plans to continue advancing the technology-based platform while expanding CRO capabilities by establishing an efficacy center by January next year and increasing the non-clinical center's maximum capacity to 28 billion KRW by March. Additionally, he announced plans to establish a pharmacokinetics (PK) and pharmacodynamics (PD) center by October next year as an additional growth driver.

He also explained the expansion plans for the STC platform. CEO Park said, "To truly make this platform a 'Game Changer,' it must be developed into a platform that can be supplied to hospitals conducting Phase 2 and 3 clinical trials," adding, "To achieve this, we will enhance it by developing the most challenging part, the 'EDC converter,' to shorten clinical trial periods and reduce costs."

DT&CRO is conducting a public offering of 1.4 million shares through this IPO, with Kiwoom Securities as the lead underwriter. The offering price will be determined through demand forecasting over two days, from the 26th to the 27th. General subscription will follow on the 2nd and 3rd of next month. The expected listing date is the 11th of next month. The current price band is set between 22,000 and 25,000 KRW, with an expected market capitalization after listing of approximately 138.9 billion to 157.9 billion KRW.

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