Neurophet passes technical evaluation for IPO on Kosdaq

Following FDA approvals for Eisai and Biogen's Leqembi (lecanemab-irmb) and Lilly’s Kisunla (donanemab-azbt), which are expected to drive growth in the global Alzheimer's disease (AD) treatment market, Korean medical software firm Neurophet said Tuesday that it has passed the technical evaluation for Kosdaq's technology-based special listing, moving it closer to an initial public offering (IPO).

Neurophet said Tuesday that it has passed the technical evaluation for Kosdaq listing, with plans to file for preliminary listing this year. (Courtesy of Neurophet)

Technical evaluation is the first step to Kosdaq special technology listing, a system that allows companies with advanced technology to go public based on assessments by designated agencies. To qualify, companies must receive at least an A and BBB rating from two agencies authorized by the Korea Exchange—the Korea Technology Finance Corporation and the Korea Technology Credit Bureau—based on criteria such as technology, business viability, and growth potential.

Neurophet secured A and BBB ratings from both agencies, moving it one step closer to its IPO.

The company plans to file for a preliminary listing this year based on the results of the technical evaluation. Mirae Asset Securities, one of Korea’s largest investment banking and brokerage firms, is the lead underwriter.

The global market for AD drugs is projected to grow from $1.737 billion in 2021 to $33.872 billion by 2027, with a compound annual growth rate (CAGR) of approximately 64.1 percent, according to a report by the Korea Institute of Science and Technology Information.

However, anti-amyloid intravenous therapies like Leqembi and Kisunla have been associated with side effects, including amyloid-related imaging abnormalities (ARIAs) such as brain edema (ARIA-E) and hemorrhage (ARIA-H), which were reported in 20-30 percent of patients during clinical trials.

Neurophet specializes in AI-based brain disease technology and has recently launched Neurophet AQUA AD, a software designed to aid in diagnosing and monitoring AD, particularly in managing the side effects of anti-amyloid therapies such as Leqembi and Kisunla.

The software quantitatively analyzes MRI and PET images, providing comprehensive brain imaging analytics during the anti-amyloid dosing process. From determining eligibility for treatment prescription to monitoring ARIA and analyzing the effectiveness of treatment on reducing amyloid beta, Neurophet said its software “dramatically increases the chances of drug development success and clinical operation efficiency."

The technology is currently being used in the global phase 3 clinical trial of AR1001, an oral AD treatment developed by Korean pharmaceutical company AriBio.

"Our company has been intensively researching and developing AI-based brain image analysis technology for many years,” said Jake Jun-kil Been, CEO of Neurophet. “We are committed to advancing the diagnosis and treatment of dementia through ongoing research and global expansion."