[Bio Story]③Sanghoon Lee, CEO of ABL Bio: "Short-Term Stock Boosts? Enhancing Fundamental Value Is the Answer"

Sanghoon Lee, CEO of ABL Bio, Interview ③


"Market Cooling Is Also Part of a Natural Cycle"

"Clear Establishment of Target Product Profile (TPP) Is Essential"

As the domestic bio investment market is experiencing a severe cold spell due to a liquidity crunch, Lee Sanghoon, CEO of ABL Bio, suggested that only a thoroughly differentiated clinical strategy and responsible business execution by management can guarantee the survival of biotech companies. This was stated during an interview with The Asia Business Daily at the company’s headquarters in Gangnam-gu, Seoul on the 26th of last month. He pointed out, "The success or failure of a company does not lie in short-term stock price boosts or blind listings, but ultimately depends on enhancing the fundamental qualitative value of its pipeline."

Lee Sanghoon, CEO of ABL Bio, is giving an interview to The Asia Business Daily at the company headquarters in Gangnam-gu, Seoul on the 26th of last month. Photo by Yoon Dongjoo

CEO Lee expressed the view that the recent contraction in bio venture investment is part of a macro capital market cycle. He said, "When I founded PharmAbcine in 2008 during the U.S. subprime mortgage crisis, the bio market also experienced a slump, but it saw a resurgence from the mid-2010s onward. The current investment freeze is also a natural part of the cycle, and only companies that quietly endure and prepare during this period will eventually be re-evaluated by the market." He emphasized that instead of blaming only a lack of funding, companies must reflect on whether they have properly utilized the capital secured during past investment booms for growth.

As core survival strategies, CEO Lee highlighted the importance of setting a clear Target Product Profile (TPP) and thorough differentiation at the clinical stage. He stressed, "Vague claims such as 'we are the only ones developing this in the world' do not hold up; it is essential to prove, with preclinical and clinical data, that the drug’s efficacy is superior or its toxicity profile is safer compared to existing medications." He explained that from the early stages of new drug development, companies should establish a Target Candidate Profile (TCP) by analyzing cell-level efficacy, pharmacokinetics (PK) in animal models, and maximum non-toxic doses, and then build a TPP as a clinical market entry strategy based on these findings.

The bispecific antibody for gastric cancer, ‘ABL111’, which ABL Bio is currently developing, is the result of such a meticulous strategy. CEO Lee explained, "While competitors are entering the second-line treatment market using Antibody-Drug Conjugates (ADCs), ADCs have strong toxicity, which limits their use as first-line treatments. We have directly targeted the first-line treatment market by combining ABL111 with standard immuno-oncology therapies and chemotherapy." He added, "ABL111 focuses on differentiating its clinical value by dramatically extending response duration compared to existing therapies through the activation of memory T cells, while simultaneously reducing toxicity."

He repeatedly emphasized that implementing such complex strategies and leading the organization is entirely the responsibility of the CEO. Lee said, "After listing, companies have the opportunity to use raised funds to continuously upgrade their own pipeline and platform, but if they fail to transform this into a portfolio for growth, they will inevitably be left behind." He asserted, "It is no exaggeration to say that the fate of a biotech company depends 100% on the CEO’s competence and accountability. If one becomes overly concerned with short-term stock prices and tries to exploit external issues with impure intentions, it will ultimately end in failure. Only by accumulating an objective clinical record and making bold pivots when necessary can a company earn the trust of the market."

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