[Click eStock] "Syntekabio Secures Commercialization Credibility through Contract with US Biotech"

Hana Securities analyzed on the 3rd that Syntekabio has secured the reliability of platform commercialization through a contract with the US-based Pragma Biosciences.

On the same day, Tae-woo Kwon, a researcher at Hana Securities, stated in a report, “Syntekabio independently owns the core infrastructure of AI drug development, supercomputing power, through the ABS Center,” and evaluated, “The ABS Center, which integrates AI software, high-performance computing resources, compound libraries, and data storage and management capabilities, is the technical foundation that practically supports Syntekabio’s platform competitiveness.”

The language model-based drug development SaaS service LM-VS operated at the ABS Center extracts 1,000 suitable active compounds from over 10 billion compounds within an average of 2 hours after the user inputs a target and provides a report.

Subsequently, through DeepMatcher’s protein-based prediction algorithm, it analyzes binding stability, physicochemical properties, toxicity potential, etc., establishing an advanced screening system to select final active compound candidates. DeepMatcher is utilized for screening and lead compound discovery, with plans to expand to pharmacokinetics and toxicity prediction and preclinical stages through CRO in the future.

Last month, Syntekabio formalized platform commercialization by signing a contract with US-based Pragma Biosciences for drug candidate discovery based on DeepMatcher. Through this contract, worth up to 4.5 billion KRW, a total of five service stages will be performed, from discovering new compounds for target substances to lead optimization and animal testing.

Researcher Tae-woo Kwon analyzed, “The contract clause is structured to secure rights to the drug candidate in the form of equity if certain conditions are not met, thus providing risk response capability,” and added, “This contract is a case proving the commercialization potential of Syntekabio’s AI drug development platform in the global market.”

Since its listing, Syntekabio has continuously recorded operating losses without showing visible results. This was mainly due to increased fixed costs such as labor costs, conferences and marketing, server expansion, and CRO outsourcing costs. Accordingly, operating expenses expanded to around 14 billion KRW.

However, this year, it is aiming for a sales rebound through revenue realization based on DeepMatcher and is also pursuing a strategy to partially offset fixed cost burdens by leasing idle computing resources of the ABS Center externally. DeepMatcher is estimated to have secured about 2.5 billion KRW in sales through a $690,000 contract based on three targets with Kymera, a TPD specialized company, and collaborations with LudaCure and Hanmi Pharmaceutical.

Additionally, LM-VS completed its global launch last month and has begun market expansion along with strengthening its sales force. Researcher Tae-woo Kwon positively evaluated the future growth potential, stating, “The North American entry strategy through the US corporation is also becoming visible, so gradual expansion of the global business is expected.”

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