Acquisition of Old Shares with an Investment of 24 Billion KRW
[Asia Economy Reporter Lee Gwan-joo] CrystalGenomics announced on the 22nd that it will acquire PanGen, a KOSDAQ-listed bio new drug development company, for 24 billion KRW.
This acquisition is through the purchase of existing shares, with CrystalGenomics securing a 20.43% stake (2,181,818 shares) in PanGen, becoming the largest shareholder. Through this acquisition, CrystalGenomics plans to enhance the scalability of its biobetters and innovative bio new drug development pipelines to increase corporate value.
Specifically, CrystalGenomics has strengths mainly in small molecule drug research and development, while PanGen specializes in polymer bio-pharmaceutical R&D. It is expected that they will be able to discover excellent new drug candidates and simultaneously promote product development in the form of technology licensing. Additionally, they plan to advance the production of clinical trial drugs and finished pharmaceuticals for U.S. clinical trials, as well as the establishment of cGMP (current Good Manufacturing Practice) pharmaceutical manufacturing facilities, aiming to establish a foundation as a total bio company at an early stage.
PanGen possesses bio-pharmaceutical R&D and cGMP production facilities and is currently contract manufacturing (CMO) the biosimilar anemia treatment drug (EPO) domestically and internationally, having experience in successful R&D to commercialization. CrystalGenomics’ core pipeline, the pancreatic cancer drug candidate 'Ivaltinostat,' is being produced overseas via CMO. This acquisition signifies securing a stable R&D and production base for Ivaltinostat as well as biobetters and disease-modifying osteoarthritis drug (DMOAD) new drug candidates.
Furthermore, by utilizing PanGen’s global network, it is expected to positively impact the overseas sales expansion of Aselex developed by CrystalGenomics. Currently, a joint venture (JV) has been established with Malaysia’s government agency VentureTech and state-owned pharmaceutical company Duopharma, supplying products to 41% of hospitals administering anemia treatments and constructing new production facilities exceeding 2000 liters. This will be leveraged to expand sales starting from the Association of Southeast Asian Nations (ASEAN) and eventually entering the European market.
A CrystalGenomics representative explained, "CrystalGenomics, with strengths in small molecule drug R&D, and PanGen, specialized in polymer bio-pharmaceutical R&D, will cooperate mutually to transform into a total bio company capable of R&D, production, and distribution, making this a new growth engine."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
