Vivozon Healthcare "Making Every Effort to Resolve Reasons for Half-Year Opinion Rejection... Clinical Trials Progressing Smoothly"

[Asia Economy Reporter Jang Hyowon] Vivoson Healthcare announced on the 23rd that it will actively resolve the reasons for the disclaimer of opinion in the semi-annual review report and strive to receive an unqualified opinion in the year-end audit report.

The company explained through a post on its website that the auditor's "disclaimer of opinion" was largely due to delays in submitting materials caused by practical issues, a decline in performance of existing businesses, and delays in securing visible results in new businesses.

Vivoson Healthcare was designated as a management item on the 17th after the accounting firm's review opinion on the semi-annual consolidated financial statements was confirmed as a disclaimer of opinion. The auditor issued the review opinion based on ▲ non-receipt of reliable semi-annual financial statements and ▲ uncertainty regarding the going concern assumption.

A Vivoson Healthcare official said, "Since Vivoson was incorporated as an affiliate in March this year, the audit scope has expanded," adding, "Although the financial statements of the affiliate were submitted later than the schedule requested by the auditor, the semi-annual review report was ultimately completed."

He continued, "The uncertainty regarding the going concern assumption pointed out by the auditor will also be resolved through the merger with Vivoson Pharmaceutical," and added, "We will organize the business structure and internal systems to actively resolve the reasons for the semi-annual review opinion and strive to receive an unqualified opinion on the year-end audit report."

Regarding concerns about the financial structure raised by some, a company official stated, "Based on the semi-annual separate financial statements, we hold current assets of 37.6 billion KRW, including cash and cash equivalents and short-term financial instruments," and added, "Since there are no borrowings except convertible bonds, the financial structure is being maintained stably."

Meanwhile, Vivoson Healthcare resolved to merge with Vivoson Pharmaceutical on the 12th and will actively pursue performance improvement and business synergy creation in the second half of the year. In addition, it has acquired the exclusive domestic license for the injection and topical formulations of ‘Opiranzerin,’ a non-narcotic analgesic developed by Vivoson, with the injection currently in Phase 3 clinical trials and the topical formulation in Phase 2 clinical trials.