Venture capital firm AJU IB Investment has achieved a successful global bio-investment case. With the share price of its portfolio company soaring on news of a merger and acquisition (M&A), AJU IB Investment is expected to realize a multiple of nine times its original investment.
According to foreign media reports on February 27, global pharmaceutical company Gilead Sciences has agreed to acquire Arcellx for USD 7.8 billion (approximately KRW 10 trillion). Arcellx is a bio company invested in by AJU IB Investment’s U.S. subsidiary, Solasta Ventures.
Following the acquisition announcement, Arcellx’s share price, which stood at USD 64.11, jumped to USD 113.75 at the close of trading on February 23, an increase of about 80%. AJU IB Investment has been gradually exiting its investment in Arcellx through multiple transactions since the company’s listing on Nasdaq in 2023, and still retains a significant shareholding. As a result, it is expected that the firm will achieve a cumulative investment multiple of eight to nine times its principal when it disposes of the remaining shares.
Solasta Ventures participated as the lead investor in Arcellx’s Series B round in 2019 and continued to make follow-on investments thereafter. The total principal investment is estimated at USD 15 million.
Founded in 2014 and based in California, Arcellx is a U.S. bio company focused on developing next-generation cell therapies for cancer and intractable diseases. In particular, the company is attracting attention in the field of next-generation immunocell therapy with its BCMA-targeted CAR-T therapy for relapsed/refractory multiple myeloma (rrMM) and its proprietary cell therapy platform technology. Gilead Sciences, which has agreed to acquire Arcellx, is a company with a dominant presence in the antiviral therapeutics sector and is known as the original developer of Tamiflu.
Derrick Yoon, President of Solasta Ventures, said, "Solasta Ventures will continue to identify promising companies and drive growth not only in the U.S. but also in the global bio-investment market."
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