BioToxTech Gains Growing Interest as a M&A Candidate for Celltrion

Chairman Seo Jeong-jin Announces M&A of New Drug Development Platform Company
Celltrion Becomes Second Largest Shareholder with 11.12% Stake in Biotoxtech

Celltrion announced that it will begin clinical and non-clinical trials for 10 new drug candidates next year. The goal is to approve and sell six products by 2030. On the morning of the 29th, Celltrion Chairman Seo Jung-jin said in an online press conference, “After my return, the focus is to balance Celltrion, which was a biosimilar specialist company, into a company that holds both biosimilars and original drugs through new drug development.” He added, “Currently, Celltrion has 21 pipelines, and next year, 10 new drug candidates will enter clinical trials, including six antibodies and four anticancer drugs.”

Chairman Seo also announced plans for large-scale mergers and acquisitions (M&A). The criteria for M&A revealed by Chairman Seo that day were clear. He emphasized that they are considering platform companies, not just companies developing new drugs. He said, “We are meaningfully looking into companies that have platform technologies that Celltrion does not possess,” and added, “We are focusing on whether they have secured platforms and whether there is potential to discover many new drug candidates using those platforms.”

Regarding the non-clinical trials and platform-related matters mentioned by Celltrion, BioToxTech is being discussed among investors. BioToxTech is the number one private non-clinical contract research organization (CRO) in South Korea, and Celltrion holds an 11.12% stake (the second largest shareholder) in the company. BioToxTech also owns South Korea’s first non-human primate non-clinical CRO platform. Based on its non-clinical CRO expertise, BioToxTech obtained a domestic patent in 2019 for a non-alcoholic steatohepatitis drug candidate for liver disease, achieving new drug candidate discovery through its platform.

According to Celltrion’s business report, BioToxTech is the only bio company in which Celltrion has invested and holds a major shareholder status domestically. Celltrion first acquired shares in BioToxTech on July 28, 2009, and still holds the stake. During the stock price surges of BioToxTech in 2018 and 2020, Celltrion could have realized nearly tenfold returns and sold its shares but chose not to do so.