CrystalGenomics Establishes 'Macaon,' a New Drug Development Company Specializing in Fibrosis Treatment

[Asia Economy Reporter Oh Ju-yeon] CrystalGenomics announced on the 13th that it will target the fibrosis field, which has high prospects for new drug development, as a new target area and establish 'Machaon Therapeutics Inc,' a company specializing in fibrosis treatment drug development, as a 100% subsidiary. Upon successful new drug development, Machaon will transfer all rights to CrystalGenomics and will focus strategically on technology export and listing on the KOSPI market. The funding will be sourced 100% externally, with a paid-in capital of 500 million KRW, and the investment method will be cash payment.

The company plans to transfer the technology of CrystalGenomics' epigenetic target substance 'CG-750' to Machaon as its first pipeline to conduct research and development for fibrosis treatment. Additionally, it intends to introduce competitive new drug candidates from overseas through a strategic partnership with Bellevue Asset Management, a Swiss bio-specialized investment company with a global network. The selection review is already underway, and efforts to attract investment and secure excellent personnel are in progress.

Steve Kim, Director of Business Development at CrystalGenomics, will serve as CEO of Machaon, and Dr. Youngdae Kim from the bio team will take the role of Chief Technology Officer (CTO). They aim to collaborate on clinical strategies for the drugs under development to increase the success rate of these new drugs and reduce time and costs.

Fibrosis refers to the process where damaged tissue undergoes inflammation and healing, resulting in fibrotic tissue formation. Representative diseases include pulmonary fibrosis, liver fibrosis, and renal fibrosis. Although the global incidence is increasing, treatment efficacy remains insufficient. A company official stated, "In this context, several studies have shown that CG-750 is effective against fibrosis."

The company explained that they confirmed the drug efficacy using a bleomycin-induced mouse model of idiopathic pulmonary fibrosis and a polyhexamethylene guanidine-induced pulmonary fibrosis model, the main component of humidifier disinfectants, in collaboration with Professor Hak-ryul Kim’s respiratory medicine team at Wonkwang University College of Medicine, and published the results in an international academic journal. Furthermore, in studies conducted with Professors Su-wan Kim and Eun-hee Bae’s nephrology teams at Chonnam National University Medical School using a chronic renal fibrosis UUO mouse model and renal cells, CG-750 not only reduced the expression of fibrosis-related biomarkers but also decreased the expression of inflammatory factors, with findings published in Scientific Reports, a sister journal of Nature. Additionally, Professor In-gyeom Kim’s team at Kyungpook National University Medical School demonstrated through animal experiments that CG-750 inhibits mTORC1 signaling, reducing cardiac hypertrophy, and published the results in an international pharmacology journal.

For listed bio companies, the failure of new drug development can lead to overall company instability, making it a significant burden to pursue new drug development in relatively less-verified disease areas. Conversely, subsidiaries have relatively lower risk exposure when entering new businesses, allowing for more aggressive new drug development efforts.

A CrystalGenomics official stated, "While generating revenue through Aselex, CrystalGenomics focuses on developing new drugs such as analgesics and anti-inflammatory agents, molecular targeted anticancer drugs, and superbug treatments. Considering the costs and risks of new drug development, having a subsidiary dedicated to fibrosis drug development offers many advantages, including the ability to concentrate on specific diseases, thereby enhancing expertise."