[Asia Economy Reporter Hyunseok Yoo] KPM Tech has invested in a U.S. biotech company developing a treatment for the novel coronavirus disease (COVID-19) together with its affiliate Telcon RF Pharmaceutical.
On the 4th, KPM Tech announced that it decided to invest a total of 4 million dollars (approximately 4.9 billion KRW) in Humanigen, Inc. in a consortium with Telcon RF Pharmaceutical. KPM Tech and Telcon RF Pharmaceutical will each acquire 2.3 million new shares, totaling 4.6 million shares. The purchase price per share is 0.87 dollars.
Humanigen is a cell and gene therapy development company located in San Francisco, USA. Its main pipeline, Lenzilumab, is also undergoing combination therapy clinical trials with Yescarta, an immune cell therapy from Kite, a subsidiary of Gilead Sciences in the U.S.
Humanigen is listed on the U.S. over-the-counter market (OTCQB) and has recently gained attention for developing a COVID-19 treatment. Following news of the COVID-19 treatment clinical trials, its stock price rose from 0.49 dollars at the beginning of this year to 2.92 dollars on June 3 (local time).
Using Lenzilumab, Humanigen is developing a COVID-19 treatment, and currently, a Phase 3 clinical trial is underway with the U.S. Food and Drug Administration (FDA). On April 2, it received emergency patient dosing approval from the FDA, and on April 15, it obtained approval to start clinical trials. According to the market research firm GlobalData, as of early last month, about 13 companies, including Humanigen, are conducting Phase 3 clinical trials for COVID-19 treatments in the U.S.
The advantage of the COVID-19 treatment under development is that it not only treats but also prevents the cytokine storm caused by COVID-19 complications. A cytokine storm is a phenomenon where immune substances are excessively secreted, attacking normal cells instead.
A KPM Tech official stated, “This investment was conducted through a public offering led by JP Morgan, and demand exceeded the planned amount, highlighting growth potential in the market,” adding, “We plan to pursue further cooperation with Humanigen in the future.”
Meanwhile, Humanigen announced on the 2nd (local time) that it successfully raised about 72 million dollars through a public offering led by JP Morgan. The raised funds will mainly be used for clinical trials of the COVID-19 treatment and combination therapy clinical trials with the CAR-T immune cell therapy Yescarta.
Additionally, Humanigen is scheduled to present on the prevention and treatment of cytokine storms at the Jefferies 2020 Virtual Global Healthcare Conference on the 4th (local time).
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
