VIDI, Shinrajen Conduct PT for Selection of Preferred Negotiation Partner for Sale

[Asia Economy Reporter Hyunseok Yoo] VIDI announced on the 12th that it conducted an acquisition presentation (PT) for the selection of the preferred negotiator for ShillaGen.

VIDI has selected the bio business as a new growth engine and has been actively pursuing related businesses, including acquiring the U.S. pancreatic cancer drug development company ‘Ellison Pharmaceuticals’ last November. Aiming to expand its bio business, VIDI submitted a letter of intent (LOI) for the preferred negotiation to acquire ShillaGen in February this year and completed due diligence.

To ensure a successful acquisition of ShillaGen, VIDI formed an advisory group centered on Dr. Kim Seonjin of ‘PlatBio,’ with whom it signed a bio business partnership in February, including two domestic law firms, one accounting firm, and its own advisory team. Dr. Kim Seonjin is known as an authority in clinical implementation research, having previously joined Kolon TissueGene and led the resumption of the FDA Phase 3 clinical trial for Invossa.

In this PT, VIDI presented a management improvement plan focused on financial soundness, management transparency, and business continuity to ShillaGen, based on pre-due diligence materials prepared by its advisory team. To ensure management transparency, it emphasized ▲ separation of ownership and management by professional managers ▲ employment succession of executives and researchers to maintain continuity of Pexa-Vec ▲ supplementation and management of internal control systems.

A VIDI official stated, “During due diligence, Dr. Kim Seonjin reviewed the value of Pexa-Vec and the possibility of redesigning Phase 3 clinical trials through synergy with Ellison, while law firms Yulchon and Jipyung focused on verifying ShillaGen’s overall potential risks and the possibility of resuming transactions. Samil Accounting Corporation was responsible for accounting issues and corporate valuation and completed thorough investigations.”

He added, “During this PT, both parties engaged in beneficial discussions that exceeded the scheduled time. If selected as the preferred negotiator, we will do our best to promptly raise funds, transparently form committees, and submit early reports on the implementation of the management improvement plan, aiming to resume transactions in the first half of this year.”

The company explained that since the morality of the management is a key issue in resuming ShillaGen’s transactions, VIDI’s stable management capabilities will also help in being selected as the preferred negotiator.

Meanwhile, ShillaGen’s trading was suspended in May last year. Along with VIDI, a total of three companies submitted letters of intent for resuming transactions, and the selection result of the preferred negotiator is scheduled to be announced on the 15th.