[Asia Economy Reporter Minwoo Lee] Iljin Holdings' stock price is on the rise. This appears to reflect expectations following rumors of the sale of Canadian bio-venture 'Orinia Pharmaceuticals (hereafter Orinia)', in which it holds shares. Orinia owns 'Lupkynis', the first orally approved treatment for lupus nephritis in the United States.
As of 2:39 PM on the 25th, Iljin Holdings' stock price recorded 7,450 KRW, up 8.76% from the previous day. The news that the major U.S. pharmaceutical company Bristol-Myers Squibb (BMS) is seeking to acquire Canadian Orinia Pharmaceuticals seems to have acted as a positive factor.
According to Bloomberg on the 23rd (local time), the major U.S. pharmaceutical company Bristol-Myers Squibb is reportedly reviewing the acquisition of Orinia. This is interpreted as a strategy to expand its portfolio of treatments by acquiring Orinia, which has been recognized for its technology through the approval of an oral lupus nephritis treatment in the U.S. Following this news, Orinia's stock price closed at $28, up 26.75% from the previous day.
Accordingly, Iljin Holdings, which holds shares in Orinia, appears to have shown strength. Iljin Holdings holds shares in Orinia through its affiliate Iljin S&T. It reduced its stake in Orinia from 15% in 2019 to 4.5% at the end of last year. Considering the sharp rise in Orinia's market capitalization, the capital gains from the sale are reported to reach 100 billion KRW. The recent surge in stock price is interpreted as increasing expectations for additional benefits.
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