Spark BioPharma Closes $22.8M Pre-IPO Round

Spark BioPharma, a South Korean drug discovery company, has raised 31.5 billion KRW (approximately $22.8 million USD) in a pre-IPO round, marking one of the more substantial financing rounds in the domestic biotech sector this year.

The round drew participation from nine institutional investors, including policy finance and banking-affiliated institutions —Korea Development Bank, IBK Industrial Bank of Korea, and Shinhan Capital — alongside financial and venture investors SJG Partners, Mford Equity, OpenWater Investment, Plexus Partners, AOA Capital Partners, and J-Bio Investment Association.

Founded in 2016, Spark BioPharma develops small-molecule new drug candidates through its proprietary drug discovery platforms. Its core technology, PhenoCure™, identifies novel drug candidates by directly observing phenotypic changes in disease at the cellular level, enabling the discovery of compounds with previously unexplored mechanisms of action. The company has also developed PPICure™, an AI-powered platform designed to precisely modulate protein-protein interactions (PPIs), which is being used to expand its pipeline across oncology, anti-fibrotic, and immunological disease indications.

The company’s lead asset, SBP-401, is currently in Phase 2a clinical trials for idiopathic pulmonary fibrosis (IPF). Spark BioPharma says SBP-401 is accumulating safety and efficacy data that the company believes strengthens its potential for global technology licensing deals. Alongside SBP-401, the pipeline includes candidates targeting solid tumors, dyslipidemia, and neurological disorders.

Proceeds from the round will be directed primarily toward accelerating clinical development of the key pipeline assets and advancing downstream R&D activities. The company also intends to formally initiate its KOSDAQ listing process on the back of this financing. Spark BioPharma previously appointed KB Securities and Samsung Securities as joint lead managers for its planned IPO.

“We are grateful to the investors who recognized the value of our platform technology and pipeline even in a challenging market environment,” said Seungbeom Park, CEO of Spark BioPharma. “We will build on this investment to strengthen our clinical development momentum and maximize shareholder value through a successful IPO.”