ZTreeBNT Secures Large-Scale Liquidity Through Acquisition of HL Biotech... "Accelerating New Drug Development"

[Asia Economy Reporter Jang Hyowon] GTreeBNT announced on the 13th that it will receive a large-scale investment from the HL Biopharma consortium, which includes Next Science and HL Biopharma.

The total investment amount is approximately 95 billion KRW, consisting of a 40 billion KRW third-party allotment paid-in capital increase and 55 billion KRW convertible bond issuance. Upon completion of the paid-in capital increase, Next Science will become the largest shareholder of GTreeBNT.

With the liquidity secured through the HL Biopharma consortium's investment, GTreeBNT will be able to accelerate clinical trials of its dry eye treatment (RGN-259), which is preparing to apply for a Pre-BLA meeting with the FDA, as well as its glioblastoma treatment (OKN-007) and epidermolysis bullosa treatment.

In particular, ‘OKN-007’ recently received compassionate use approval from the FDA for patients with brainstem glioma (DIPG, a rare cancer occurring in the brainstem of children), which is expected to positively influence the FDA’s clinical approval process in the future.

GTreeBNT also plans to pursue iEAP approval (investigational expanded access program for multiple patients) to allow ‘OKN-007’ to be prescribed to a broader range of brainstem glioma patients.

GTreeBNT received FDA approval to enter clinical trials for the brainstem glioma treatment last December. Discussions with a consortium of pediatric cancer specialty hospitals in the U.S. regarding the formal clinical trial are progressing smoothly, and it is expected that Phase 1/2 clinical trials will begin soon.

Yang Wonseok, CEO of GTreeBNT, stated, “Based on the secured liquidity, we plan to promptly enter clinical trials for the brainstem glioma treatment and will soon select a consulting firm for iEAP approval to develop protocols and establish clinical trial plans.”

Both GTreeBNT and HL Biopharma are developing new drugs through their U.S. subsidiaries, raising expectations for future human and technological collaboration, with anticipated synergy in the vaccine sector as well. GTreeBNT has a dedicated cold chain facility for vaccines in Icheon, Gyeonggi Province, so if HL Biopharma’s protein recombinant vaccine ‘Nanocovax,’ for which it holds global rights, is introduced domestically in the future, GTreeBNT’s vaccine distribution network is expected to be utilized. Currently, GTreeBNT distributes Pfizer, AstraZeneca, and Janssen vaccines nationwide.

Meanwhile, GTreeBNT’s extraordinary general meeting of shareholders to approve the acquisition by the HL Biopharma consortium is scheduled for October 29.