[Asia Economy Reporter Hyunseok Yoo] Cellivery announced on the 17th that it has acquired Ajin Clean to expand the versatility of its proprietary drug development platform technology, the Therapeutic Substance Delivery Technology (TSDT), and to secure future growth engines.
Ajin Clean recorded sales of 37.1 billion KRW and a net profit of 1.1 billion KRW last year. Cellivery will change Ajin Clean’s company name to Cellivery Living & Health (Cellivery L&H).
Cellivery Living & Health plans to enter into a non-exclusive licensing patent cross-license agreement for the TSDT platform technology owned by Cellivery, aiming to research, develop, and commercialize healthcare product lines across various business sectors. Additionally, it has signed a Material Transfer agreement for the patent substance of iCP-NI, an intrinsic immune-regulating anti-inflammatory immunomodulator under development as an infectious disease immunotherapy including COVID-19, to apply it across all healthcare fields such as beauty and daily health businesses.
A Cellivery representative stated, "Through this agreement, Cellivery will receive an upfront payment and annual technology transfer fees by granting Cellivery Living & Health a non-exclusive license to the TSDT platform technology during the contract period. We also expect to generate significant revenue through raw material supply for beauty and healthcare product lines such as iCP-NI."
To expand new businesses, Cellivery formed a New Business Development Headquarters over the past year to review marketability, business feasibility, and technical possibilities. Through this, Cellivery Living & Health plans to establish core business areas such as skincare, dental care, and body care to maximize the versatility of iCP-NI, an immune system regulating pharmacological substance beyond pharmaceuticals. Sales are expected to reach 65 billion KRW in 2022. Based on the acquired company’s professional production personnel and advanced manufacturing facilities, the goal is to achieve sales in the 200 billion KRW range within three years and list on the KOSDAQ market.
Furthermore, to develop the healthcare new business, clinical trials have already been completed on a total of 150 subjects at specialized clinical institutions to prove the safety of iCP-NI’s skin anti-inflammatory effects and low-irritation functions. The skin safety test confirmed non-toxicity, and the ultraviolet stimulation test demonstrated 200% skin soothing efficacy after 24 hours. Clinical trials on subjects with severe damage caused by chemical irritation showed 241% skin recovery ability. Additionally, further clinical trials involving 219 subjects are currently underway and are expected to be completed by December.
Starting from the fourth quarter, Cellivery Living & Health plans to launch various specialized beauty and healthcare products along with integrated marketing, beginning with eight product lines across three differentiated sectors proven by clinical trials: beauty, daily health, and wet tissue business sectors.
A Cellivery representative said, "Cellivery and Cellivery Living & Health have independent boards of directors as separate corporations," adding, "The licensing strategy for the core business of Cellivery, the TSDT platform technology, and innovative new drugs applying this technology remains unchanged." He continued, "Since technology transfer fees, raw material sales, and royalties from Cellivery Living & Health are expected to secure annual funds in the 10 billion KRW range through two separate contracts, this will greatly support the core business operations of the parent company Cellivery."
Currently, Cellivery is preparing for clinical trials in the U.S. and Europe for iCP-NI, a severe and critical COVID-19 immunotherapy. It is conducting individual licensing negotiations with global pharmaceutical companies regarding the TSDT platform technology and a new drug for ataxia treatment. Additionally, specific licensing negotiations are underway with Asian global pharmaceutical companies for regional rights and technology transfer of iCP-NI for autoimmune diseases such as Atopic Dermatitis and Chronic Obstructive Pulmonary Disease.
Alongside this, once the verification test of the TSDT platform technology with a Western European-based global pharmaceutical company is completed, Cellivery plans to immediately enter technology transfer negotiations. Furthermore, it is conducting joint development and technology licensing negotiations for nucleic acid therapeutics applying the TSDT platform with an innovative siRNA-based biopharmaceutical company, as well as technology transfer discussions for applying the TSDT platform technology to skin disease treatments with a global pharmaceutical company in the dermatology field.
A Cellivery representative explained, "We have separately signed a confidentiality agreement with the U.S. business development headquarters of a top 10 global pharmaceutical company and are discussing TSDT platform fusion technology for new drug development targeting congenital rare genetic diseases with the goal of technology licensing," adding, "Since this is a new technology field that no one has attempted before, we expect it to become a drug development technology that can create a major sensation."
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