One & Partners Extends ENCell Lockup to 3 Years, Saying It Believes in CGT Growth

One & Partners, a limited liability company specializing in management consulting and stock investment, has extended the joint-purpose ownership commitment period for its 150,000 shares of KOSDAQ-listed ENCell from two years after listing to three years, in an agreement with CEO and largest shareholder Jong-wook Jang. According to the Financial Supervisory Service’s electronic disclosure system, One & Partners disclosed the change in a report on the status of large shareholdings as of the 21st. The move is drawing market attention because it is unusual for a financial investor (FI) to voluntarily delay its exit and extend its lockup shortly after a company’s listing.

Under the change, the shares subject to the joint-purpose ownership commitment decreased from 503,125 shares (4.82%) in the previous report to 150,000 shares (1.35%). One & Partners initially agreed to delegate voting rights for all of its shares to CEO Jong-wook Jang for two years after listing. The parties have now amended the agreement so that, for 150,000 of the shares, the period for jointly exercising voting rights and restricting on-market sales will be extended to three years after listing.

The number of ENCell shares held by One & Partners and specially related parties remains 1,371,375, unchanged from the previous report. However, as the total number of issued voting shares increased from 10,445,179 to 11,029,517, the ownership ratio fell by 0.7 percentage points, from 13.13% to 12.43%. By reporting party, One & Partners holds 1.15 million shares (10.4%), largest shareholder Won-il Kim holds 220,875 shares (2.00%), and affiliated company executive Seong-gyu Lee holds 500 shares (0.01%).

■ Samsung Medical Center Spin-off, South Korea’s No. 1 CGT CDMO

ENCell is a biotech venture spun off from Samsung Medical Center in 2018 through a faculty startup and was listed on the KOSDAQ in August 2024. The company has established a “dual-track” business model that simultaneously pursues contract development and manufacturing organization (CDMO) services for cell and gene therapies (CGT) and the development of drugs for rare diseases. It ranks first in South Korea’s CGT CDMO market, with an approximately 58% market share, and has carried out more than 36 projects for 19 customers, including global big pharmaceutical companies such as Novartis and Janssen. Its cumulative order value has reached approximately 43 billion won.

According to global market research firm Frost & Sullivan, the global cell and gene therapy market is projected to grow more than threefold, from $16.3 billion in 2023 to $55.5 billion in 2026 (approximately 81 trillion won). In other words, the CGT CDMO market that ENCell is targeting is itself expanding rapidly. Samsung Life Public Welfare Foundation’s participation as a major shareholder is also cited as a factor that strengthens confidence in the company.

■ Easing Overhang Concerns and Expectations for Drug Commercialization

The lockup extension is expected to ease concerns about an overhang, or a large potential supply of shares for sale, in the market. With major shareholder holdings equivalent to approximately 5% of all issued shares locked up for three years, analysts say short-term downward pressure on the stock price may be reduced. Industry experts said, “Given the characteristics of biotech ventures, it takes time for drug clinical development to progress and for CDMO plant utilization to increase,” and assessed that “the major investors’ decision to extend the lockup is a positive signal that they are willing to wait for the company’s fundamentals to improve.”

The company’s proprietary drug pipeline is another area drawing attention. EN001, which ENCell is developing, targets Charcot-Marie-Tooth disease (CMT), a rare genetic disorder, and has now entered a phase 2a clinical trial. The drug has received orphan drug designation from the U.S. FDA, and the company has also obtained a patent for its core culture technology. With the implementation of amendments to the Advanced Regenerative Bio Act, the possibility of early commercialization within 2026 has also been raised. Discussions on global licensing out are proceeding in parallel.

For global expansion, ENCell signed a strategic MOU with Cell Therapies, Australia’s largest CGT CDMO company, to target the Asia-Pacific (APAC) region. The company has also completed the establishment of a contract manufacturing platform for AAV (adeno-associated virus)-based gene therapies, and a full-scale recovery in revenue and a turnaround in performance are expected to become visible from 2026. Jong-wook Jang, CEO of ENCell, said, “The extension of the major shareholders’ joint ownership commitment demonstrates their confidence in the company’s technological capabilities and medium- to long-term growth direction,” adding, “We will demonstrate our corporate value by steadily advancing key businesses, including clinical development of the next-generation stem cell therapy EN001, the regenerative medicine business in Japan, and the expansion of global CDMO orders.”