DEEP RESEARCH · RZNOMICS
Rznomics Review: RNA Trans-Splicing Platform and IPO Valuation
Reviewing RNA editing/substitution technology, the Lilly deal, pipeline, offering price, and risks
0. Bottom line first
Rznomics is a biotech using RNA substitution and editing rather than direct DNA editing to address intractable diseases. Its May 2025 deal with Eli Lilly, worth up to USD 1.334bn or about KRW 1.9tn, is the key platform-validation event, but clinical, funding, and overhang risks are also large.
Official fact: Rznomics is pursuing a KOSDAQ IPO targeted for December 2025 through Korea’s technology-growth special listing route. The source says it received A grades from both NICE Information Service and the Korea Research Institute of Bioscience and Biotechnology.
Interpretation: This is mainly a platform-value investment. Enterprise value will be driven less by current revenue and more by Lilly milestones, RZ-001 clinical data, and additional licensing potential.
1. IPO overview
| Item | Details |
|---|---|
| Security type | Registered common shares |
| Offering shares | 2,060,000 shares, 100% new issuance |
| Indicative price range | KRW 17,000-22,500 |
| Expected proceeds | KRW 35.02bn-46.35bn |
| Expected market cap | About KRW 234.1bn-309.8bn |
| Bookrunners | Samsung Securities, NH Investment & Securities |
| Expected listing | December 2025 |
The source views the listing as more than financing: it is a public-market test of platform value after the large technology-transfer agreement with Eli Lilly in May 2025.
2. Core technology
Rznomics’ competitiveness is summarized as two platforms: RNA trans-splicing ribozyme and circular RNA. The core technology is based on the Tetrahymena-derived group I intron ribozyme discovered by Thomas Cech, who received the 1989 Nobel Prize in Chemistry.
Knockdown
Strong for reducing disease-causing proteins, but does not restore or replace deficient proteins.
DNA editing
Can offer fundamental correction, but carries permanent genome-change and off-target concerns.
RNA replacement
Removes target RNA and replaces it with therapeutic RNA without editing original DNA.
3. Pipeline and Lilly deal
| Pipeline | Indication/strategy | Key point |
|---|---|---|
| RZ-001 | HCC, glioblastoma | Targets hTERT mRNA, uses HSV-tk suicide gene and ganciclovir. For GBM, FDA Fast Track and orphan-drug designation are mentioned, with seven years of exclusivity upon commercialization. |
| RZ-003 | Alzheimer’s disease | Approach edits APOE4 toward APOE2; AAV brain-delivery efficiency is the key challenge. |
| RZ-004 | Retinitis pigmentosa | Strategy replaces broader mutated RHO RNA regions with normal RNA to address more than 150 mutations. |
| Lilly partnership | Hereditary hearing loss | May 2025 research collaboration and license agreement worth up to USD 1.334bn, about KRW 1.9tn. |
Interpretation: The Lilly deal matters more as platform validation than as a single pipeline export. But upfront payment, milestones, and actual clinical success are separate issues.
4. Competition
The source compares Rznomics with Wave Life Sciences, ProQR Therapeutics, and OliX. Wave is described as an ADAR-based RNA editing company with a large GSK licensing deal and market cap around KRW 1.8tn. ProQR owns the ADAR-based Axiomer platform and focuses on ophthalmology and liver disease. OliX is described as a Korean RNAi company with market cap around KRW 270bn.
| Company | Technology | Comparison |
|---|---|---|
| Wave Life Sciences | ADAR-based RNA editing | Uses endogenous ADAR, lowering immunogenicity concern, but is limited to A-to-I single-base editing. |
| ProQR Therapeutics | Axiomer platform | Focuses on ophthalmology and liver disease; may compete with RZ-004 by indication. |
| OliX | RNAi, asiRNA, GalNAc | Strong in knockdown but limited in restoration/replacement; more mature in clinical and licensing experience. |
5. Financials and offering price
Official fact: The source explains that about KRW 7.1bn of 3Q25 revenue came entirely from the Eli Lilly upfront payment. A roughly KRW 98.0bn net loss is interpreted as an accounting expense from RCPS conversion and derivative valuation loss under K-IFRS, rather than actual cash outflow.
The IPO valuation used a PER comparison method discounting estimated 2027-2029 net income to present value. Peer companies are SK Biopharmaceuticals, Hanmi Pharm, and Chong Kun Dang. The average PER is 29.58x, and the applied discount rate is 26.49%-44.46%.
Interpretation: The lower-end market cap of about KRW 234.1bn may look low versus the KRW 1.9tn licensing size and global peers. But 2027 profitability depends heavily on additional licensing for RZ-001, RZ-003, RZ-004 and others.
6. Risks
- Customer concentration: 99% of current revenue is described as dependent on Eli Lilly.
- Funding: KRW 35bn-46bn of IPO proceeds may be consumed by R&D around 2026-2027.
- Clinical failure: RNA trans-splicing is a novel modality with no commercialization precedent, with possible immune-response or delivery-efficiency issues.
- Competition: CRISPR Prime Editing and other DNA-editing tools could become market standards.
- Overhang: Shares available immediately after listing and VC/FI lock-up expiries after one to three months.
7. Final view
Rznomics is a high-risk, high-return candidate tied to the next RNA-therapy modality. The key watch points are expected interim RZ-001 phase 1/2a results in 1H26, additional licensing, Lilly milestones, reduced single-customer dependence, and clinical safety data.
Sources
- Naver Blog original: https://m.blog.naver.com/PostView.naver?blogId=star_of_self&logNo=224097905298
- Rznomics DS Investment & Securities report: https://drive.google.com/open?id=1Idm7P2rI_Cuk5FEnh_8Znd5d3E4e3duf
- OliX OLX10212 phase 1 analysis: https://drive.google.com/open?id=1-I04pVTMOXLtHDG7hpa9OWe6wjzZIfrDPXphvfTZAsY
- Rznomics bookbuilding company note: https://drive.google.com/open?id=1YTjqHiEfpDK0BD8xAhsB8SsOcVA5XtBZ
- Source reference materials: Rznomics investment prospectus (2025.12.03), auditor financial confirmation (2025.11.14), DS Investment & Securities report (2025.11.27), bookbuilding company note (2025.11.27), OliX company report (2025.11.13)