pDNA COVID-19 Vaccine 'ZyCov-D' Contract Manufacturing Planned
[Asia Economy Reporter Hyungsoo Park] Engchem Life Sciences is launching a large-scale fundraising through a rights offering followed by a general public offering of unsubscribed shares.
According to the Financial Supervisory Service on the 20th, Engchem Life Sciences will raise 320 billion KRW through a paid-in capital increase. The raised funds will be used for facilities and operating expenses related to vaccine production. The lead underwriter is KB Securities, and unsubscribed shares after the rights offering will be underwritten by KB Securities.
The rights offering general public subscription will recruit 5.3 million registered common shares, with the record date set for the 26th of next month. The subscription period is from December 16 to 17.
Engchem Life Sciences expects improved performance due to large-scale investment in vaccine production. It has signed a memorandum of understanding for vaccine production and supply with Zydus Cadila. The company is pursuing exclusive rights for contract manufacturing and licensing of the world's first pDNA COVID-19 vaccine, ZyCoV-D. If the two companies reach an agreement, the annual production scale is expected to exceed 150 million doses, with annual sales projected to surpass 1 trillion KRW next year. After the expansion of the vaccine production plant is completed in 2024 and additional operations commence, annual sales exceeding 2 trillion KRW are also anticipated.
ZyCoV-D vaccine is the world's first pDNA-based COVID-19 vaccine that received Emergency Use Authorization (EUA) from the Indian Drug Controller General of India (DCGI) in August. On the 2nd, clinical trial results were published in the prestigious scientific journal Nature. Using Pharmajet's high-speed jet injection system 'Tropis', it can be administered intradermally without a needle, eliminating side effects such as pain. It demonstrated a high preventive efficacy of 66.6% against the COVID-19 Delta variant and 100% prevention rates for moderate, severe cases, and death.
ZyCoV-D vaccine is known for its low vaccination cost and can be stored at 2~8℃. It is approved for vaccination from age 12 and above.
Before the memorandum of understanding with Zydus, Engchem Life Sciences prepared for vaccine production by establishing a consortium with leading domestic pharmaceutical companies to enable full-process production of finished products from drug substance (DS) production to the final fill & finish (DP) stage.
The 320 billion KRW raised from the public offering will be used approximately 228 billion KRW for raw material purchases and about 88 billion KRW for licensing and facility funds. KB Securities will first provide a bridge loan of about 150 billion KRW as advance payment for raw material procurement for vaccine production. The bridge loan will be repaid once the payment for the rights offering general public subscription is completed.
An Engchem Life Sciences official stated, "The rights offering general public subscription is to secure funds for large-scale vaccine production investment," and added, "Engchem Life Sciences will leap forward as a global pharmaceutical bio company producing and supplying both pDNA and mRNA vaccines."
He continued, "It will be a historic turning point year to realize 'Vision 2030' by consolidating the capabilities accumulated so far."
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