HLB Life Science announced on the 22nd through a public disclosure that its subsidiary, HLB Cell, acquired 237,100 shares of HLB stock. The funding was secured by utilizing convertible bonds (CB) of HLB Pharmaceutical held by HLB Life Science.
They sold part of the soon-to-mature HLB Pharmaceutical CBs over-the-counter and additionally acquired HLB shares held by HLB Cell. Furthermore, to strengthen the governance structure, the remaining CBs were converted into 747,495 shares, expanding HLB Pharmaceutical’s stake to 14.6%, thereby stabilizing management control. Following HLB’s completion of the New Drug Application (NDA) with the U.S. FDA, HLB Life Science plans to lead the approval process for rivoceranib in the liver cancer field, following the ongoing review by the Korean Ministry of Food and Drug Safety for peritoneal cancer.
On the 16th (U.S. time), HLB completed the NDA submission to approve the combination therapy of rivoceranib and camrelizumab as a first-line treatment for liver cancer. This is the first case of a Korean biotech company conducting an NDA for its own anticancer drug candidate, and if approved, it is expected to pave the way for the company to become a global enterprise.
As of the closing price on the 22nd, HLB’s market capitalization stood at approximately KRW 4.4629 trillion, which is still incomparable to global companies whose corporate values have grown to tens of trillions after successful new drug development. This is why significant improvement in corporate value is expected upon new drug approval. For example, Japan’s Eisai saw its market capitalization increase by more than KRW 20 trillion after the approval of Lenvima. Similarly, China’s Hansoh Pharmaceutical’s market cap grew to KRW 100 trillion within five years following the approval of rivoceranib in China. This is also the reason why HLB Life Science decided on proactive investment.
Rivoceranib has demonstrated the longest survival rate in history at 22.1 months according to global Phase 3 clinical trial results, and it is expected to be a Best-in-Class drug.
With HLB achieving significant results in new drug development, it is anticipated that a positive momentum will return to the bio industry, which has been sluggish due to recent global inflation impacts. Lee Dae-ho, Vice President and CFO of HLB Life Science, stated, “Rivoceranib, which was first developed as a new drug candidate in 2004, is now entering the official new drug approval stage after 19 years, marking a monumental moment long awaited. As the holder of exclusive rights for Korea as a whole and parts of Europe and Japan, we understand rivoceranib’s outstanding efficacy better than anyone else, and thus we have made proactive investments to enhance shareholder value.”
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