Securing Equity through In-Kind Contribution
Technology Export Contract Signed... Advance Payment of 23.8 Billion KRW Secured
[Asia Economy Reporter Lee Chun-hee] SK Biopharm is pushing to enter the Chinese market through the establishment of a local pharmaceutical company, 'Ignis Therapeutics.' It also secured an upfront payment of $20 million (approximately 23.8 billion KRW) through the export of six new drug pipelines.
On the 11th, SK Biopharm announced that it will enter the Chinese market by establishing Ignis, a central nervous system (CNS) pharmaceutical company, together with the Shanghai-based global investment firm ‘6 Dimension Capital (6D).’ Aileen Long, former head of CNS business at Sanofi China, was appointed as CEO. With this corporation establishment, SK Biopharm has now entered all of the global 'Top 4' pharmaceutical markets: the United States, Europe, Japan, and China.
Along with this, SK Biopharm licensed the Chinese rights of six CNS new drug pipelines, including the epilepsy drug cenobamate, to Ignis. Through a capital contribution in kind, it acquired a stake worth $150 million and secured revenues including an upfront payment of $20 million, development milestone payments of $15 million, and sales royalties.
The two companies also attracted an investment of $180 million (approximately 213.4 billion KRW) to establish Ignis. This is the largest Series A investment in the Chinese pharmaceutical industry this year. Goldman Sachs, WTT Investment, HBM Healthcare Investment, Mubadala, and KB Investment participated in the investment.
Jungwoo Cho, CEO of SK Biopharm, said, “The establishment of this corporation will be an important milestone in expanding SK Biopharm’s presence in the Chinese market and providing innovative treatment options to patients,” adding, “We will accelerate SK Biopharm’s global growth strategy based on our entry into China while focusing on realizing social value.”
Leon Chen, CEO of 6D, stated, “We have achieved a significant milestone by partnering with SK Biopharm, a global innovative new drug development company,” and added, “Ignis will grow into an innovative leader in the CNS field with excellent capabilities in both research and development (R&D) and commercialization.”
Aileen Long, CEO of Ignis, also said, “Central nervous system diseases have a high unmet need for new treatments,” and “Through cooperation with SK Biopharm, Ignis has expanded its portfolio and can now offer new treatment options to patients in the Greater China region.”
Meanwhile, SK Biopharm announced its consolidated financial results (preliminary) for the third quarter of this year. According to this, SK Biopharm recorded a sixfold increase in third-quarter sales. Although operating losses and net losses continued, the company succeeded in reducing the loss margin.
SK Biopharm posted third-quarter sales of 23.951 billion KRW, an operating loss of 49.938 billion KRW, and a net loss of 44.274 billion KRW. Sales grew by 510.5% compared to the same period last year. Although operating and net losses continued, they were reduced by 20.8% and 29.8%, respectively, compared to the same period last year. Notably, the cumulative net profit for this year reached 17.719 billion KRW, successfully turning profitable compared to a net loss of 189.299 billion KRW in the same period last year.
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