[비즈한국] “I will properly bring GemVax082270, a hidden gem, into the light. I will drive the company’s leap forward through evidence-based drugs and corporate trust.”
This was the inaugural message delivered by former Gyeonggi Province Governor Nam Kyung-pil on the 17th at the inauguration ceremony for his appointment as Chairman of GemVax & KAEL (GemVax), held at the Korea Exchange.
The industry is paying close attention to the fact that a heavyweight politician, who served as a five-term lawmaker and the 6th popularly elected governor of Gyeonggi Province, has taken the helm of a new drug development company.
The event was attended by major business figures including Lee Man-deuk, Chairman of Samchully004690 Group; Kwak Jae-sun, Chairman of KG Group; Hong Jae-sung, Chairman of JS Corporation; Park Sung-chan, Chairman of Danal064260 Group; and Park Seung-hee, President of Samsung Electronics005930, as well as Park Sang-won, Chairman of the Seoul Foundation for Arts and Culture, and former professional baseball player Park Chan-ho.
Upon taking the stage, Chairman Nam actively addressed the doubts surrounding his appointment, given his lack of experience in the biotech sector. This stems from the fact that in the past, political and government figures appointed as chairmen often acted merely as "figureheads" for public relations or to shield the company.
Chairman Nam admitted, “I have been asked by acquaintances whether I know anything about biotech and what I intend to do there without holding equity or voting rights.” He directly dismissed the “figurehead” controversy by stating, “I have received a commitment from founder and largest shareholder Advisor Kim Sang-jae regarding decision-making authority. I will build a solid team to deliberate with, make rational final decisions, and take full responsibility for them.”
In fact, prior to his inauguration on the 16th, Chairman Nam signed an agreement to delegate voting rights for 5,456,126 shares (12.32%) held by GemVax's largest shareholder, Gem & Company, and 274,940 shares (0.62%) held by founder Advisor Kim Sang-jae. On the same day, he demonstrated his commitment to responsible management by purchasing 55,348 shares (0.13%) in the open market for approximately 760 million KRW.
Key figures have been appointed to “Team Nam Kyung-pil,” an expert group intended to support Chairman Nam’s rational management. CEO Lee Seok-jun will oversee overall legal and management operations, while Professor Lee Jae-hong of the Department of Neurology at Asan Medical Center will lead clinical advisory for key pipelines. Additionally, to enhance the statistical reliability of multinational clinical trials, Professor Moon Hyung-sik of USC’s Department of Economics has joined as the head of clinical statistics, and Ryu Hoon, head of the Neuroscience Research Center at the KIST Brain Science Institute, has joined as the head of basic and translational research to provide scientific verification, such as drug multi-mechanisms.
Rather than delegating research entirely to these experts, Chairman Nam emphasized that his core role would be communication and fundraising. GemVax has previously faced issues with being undervalued due to a lack of communication with the market and a somewhat opaque decision-making structure. Chairman Nam expressed his ambition: “I will restore the trust of shareholders, employees, and the market by holding regular and transparent IR events and securing funding through traditional, rational methods (Open Communication, Delegation to experts, and Trust).”
What is the appeal of GemVax, which Chairman Nam compared to a hidden gem? He pointed to GemVax’s strength in securing its own R&D funds to develop treatments for rare diseases. GemVax was established in 2008 when the semiconductor filter manufacturer KAEL acquired the Norwegian new drug development company GemVax. It currently maintains a two-track structure, focusing on new drug development backed by stable profits from its semiconductor environmental control business. Chairman Nam explained, “KAEL is the No. 1 company in Korea with a 58% market share in manufacturing air filters used in semiconductor processes. Last year, it recorded approximately 70 billion KRW in annual revenue and 17.4 billion KRW in net profit, which supports our drug R&D.”
Chairman Nam holds GemVax in high regard for its pioneering spirit in challenging the development of treatments for rare diseases. He emphasized, “PSP (Progressive Supranuclear Palsy) is a disease that even global big pharma companies have not been able to conquer. GemVax will challenge for a ‘first-in-class’ (first-in-category innovative drug) status and succeed in conquering it for the first time.”
Chairman Nam also hinted at a new approach to fundraising, the most critical factor in the commercialization of new drugs, which differs from GemVax’s previous practices. “Building trust with shareholders and the capital market is the top priority,” he said. “While we have previously secured capital primarily from individual investors, we will now actively engage in traditional fundraising methods in the capital market, such as attracting institutional investment.” He further outlined a plan to accumulate solid capital through means such as capital increases if necessary, lead the current PSP development project to success, and use this achievement as a springboard to secure self-sustaining momentum for future indications.
GemVax is currently developing its key pipeline, ‘GV1001,’ as a treatment for conditions such as Progressive Supranuclear Palsy (PSP), Alzheimer's disease, and Amyotrophic Lateral Sclerosis (ALS, Lou Gehrig's disease). Although recent domestic Phase 2a clinical trials for PSP patients failed to secure statistical significance, the company confirmed potential in terms of slowing the progression of sub-indicators such as ocular movement and swallowing function, and verified therapeutic benefits during 72-week long-term administration. Based on this, GemVax is preparing to apply for global Phase 2b/3 clinical trials, which will serve as the critical foundation for marketing approval.