Yuhan invests ₩23.1B in Yuhan USA over 4 years

...speeds up global market entry

Invests ₩7.7 billion in Yuhan USA this year… has expanded investment amount every year since its establishment in 2018

Operates offices in Boston and San Diego…works with local companies and universities

Successfully license out its GERD treatment in 2020

Yuhan Corp is making aggressive investments in its US subsidiary.

 

Investing ₩23.1 billion during the past 4 years after establishing Yuhan USA in 2018, the company has been making broad steps to advance into the global market.

 

According to the Financial Supervisory Service on the 17th, Yuhan Corp had invested ₩7.7 billion in Yuhan USA, and acquired 6 million shares in the second quarter of this year.

 

Yuhan USA, which was established in 2018, is the regional subsidiary of Yuhan Corp that is responsible for investing in promising bio-ventures, global clinical trials, and technology exports.

 

As a fully-owned subsidiary of Yuhan Corp, it has been serving as the bridgehead for the company’s global advancement.

 

Yuhan USA has two offices, one in the East, in Boston, and the other in the west, in San Diego.

 

Boston is regarded as the mecca of the global bio-industry, and San Diego is also a rising major bio cluster.

 

An official from Yuhan said, “Yuhan USA has been serving as a bridgehead for the company, strengthening R&D capabilities by quickly acquiring advanced information by engaging in active networking activities in the US for delivery to Yuhan’s Central Research Institute.” Yuhan USA visits local companies, research labs, and universities in the US to directly invest in promising technology and new drug candidates.

 

It also makes indirect investments in bio venture funds in the US and established its own fund to attract local bio-ventures and investors to visit Yuhan USA.

 

The company also directly licensed out Yuhan’s gastroesophageal reflux disease (GERD) treatment in 2020.

 

Yuhan licensed out its GERD treatment candidate 'YH12852' to Processa Pharmaceutical in August 2020 for the exclusive rights to its development, manufacture, and commercialization worldwide, except for Korea.

 

The amount totals a maximum of $408.5 million (₩500 billion).

 

Yuhan had received $2 million of Processa common stock as a non-refundable, non-creditable upfront payment.

 

Processa Pharmaceutical is an R&D specialized company headquartered in Maryland, US that was founded in 2016.

 

Yuhan USA had directly sought technology export partners and conducted negotiations in the US, and made the final deal with Processa Pharmaceutical.

 

Yuhan USA also took part in increasing the possibility of technology exports for Yuhan's new drug candidates by attending major international conferences in the U.S.

 

and introducing their clinical data.

 

At the American Association for Cancer Research (AACR) meeting that was held in April this year, Taewon Yoon, CEO of Yuhan USA, personally attended and presented preclinical data on the company's immuno-oncology drug candidate 'YH32367.' Yuhan had first invested ₩1.9 billion in Yuhan USA upon its establishment in 2018.

 

Since then, the company additionally invested ₩3.5 billion and ₩3.6 billion in 2019 and 2020, respectively, and then ₩6.4 billion last year.

 

With this year’s investment, the total amount sums up to ₩23.1 billion in 4 years.

 

The company is speeding up global market entry by increasing the investment amount every year.

 

Yuhan USA has also been contributing to the development of ‘lasertinib,’ Yuhan’s key technology export project.

 

Yuhan had made a licensing deal with Janssen bBotech for its EGFR targeted therapy ‘lasertinib’ in November 2018.

 

Including the upfront payment of $50 million with no obligation of return, the company will receive a maximum of $1.205 billion under the deal.

 

Yuhan USA is said to be continuously exchanging with its partner Jansen for the commercialization of lasertinib.

 

After making the deal for lasertinib, Janssen has been actively developing the candidate in combination with its self-developed bispecific antibody ‘amivantamab.’ The CHRYSALIS study, the first study initiated by Janssen using lasertinib, is known to be in smooth progress.

 

The study is not only investigating the ‘leclaza+amivantamab’ combination but its combination with platinum-based anticancer therapies such as ‘carboplatin,’ and ‘pemetrexed,’ etc.

 

Yuhan has been making aggressive investments to reinforce the capabilities of its subsidiaries.

 

Yuhan had invested ₩12.3 billion in Yuhan Care since last year.

 

After acquiring 1,469,768 shares of Yuhan Care for ₩5.4 billion, it additionally invested ₩6.9 billion in Q1 this year.

 

Yuhan also invested ₩21.4 billion and ₩0.9 billion last year and this year, respectively, in its IV product subsidiary, MG.

 

The funds Yuhan invested in MG were used for the expansion and improvement of the company’s IV facilities.