ZennCell Gains Attention from Investors KoreaPharma and KH Philux Following COVID-19 Treatment Clinical Approval

[Asia Economy Reporter Yoo Hyun-seok] With Genencell receiving approval for the domestic Phase 2 and 3 clinical trial plans (IND) for its oral COVID-19 treatment, attention is also focusing on Genencell's strategic investment companies (SIs).

The first publicly listed company in Korea to invest in Genencell was KH Philux. In November last year, it invested in Genencell through a new share subscription. These funds were used for the clinical trial costs of the COVID-19 treatment in India.

As part of its strategy to diversify business and secure growth potential, KH Philux has continued to support Genencell through proactive investments, including acquiring convertible bonds (CB) earlier this year.

Korea Pharma, which made an investment in Genencell in February this year, is responsible for producing clinical trial drugs developed by Genencell. Along with producing formulations for domestic clinical trials, it has completed remote inspections by European contract research organizations (CROs) and is establishing itself as a global production base for stable drug supply.

Additionally, Korea Pharma is also in charge of producing another pipeline drug for shingles treatment, which is currently in Genencell’s Phase 2a clinical trial, and the two companies are jointly developing new pipelines such as treatments for osteoarthritis and non-alcoholic steatohepatitis.

At that time, Leaders Technology Investment also participated in the capital increase alongside Korea Pharma, maintaining its relationship as a strategic investor. Recently, Sejong Medical invested approximately 11.3 billion KRW in Genencell through convertible bonds (CB) and other means.

A Genencell representative stated, "We are grateful to the companies that invested believing in the company's future value and growth potential, and we expect to smoothly proceed with clinical trials based on strong cooperative relationships with these companies."