Industry busy with M&A and investment for new opportunity

[2020 R&D Briefing Pt. 4] GC and Celltrion had successful M&As

Yuhan and Boryung hectic with outward investment

In the year 2020, many of South Korean pharmaceutical companies turned their eyes on new potential businesses.

 

They reported major M&A news more than before.

 

Some of them also took a bold step into bio company investment to find new opportunities.

 

◆GC and Celltrion ink notable M&A deals in hopes of finding new lucrative businesses The industry paid a close attention on GC as it delivered the news of finalizing two big M&A deals.

 

GC Healthcare paid 208.8 billion won in last February to acquire an IT company UB Care.

 

GC Healthcare is a subsidiary of GC that provides customized healthcare service based on IT.

 

UB Care is South Korea’s number one electronic medical record (EMR) solution company, which developed EMR system for the first time in the country.

 

It owns Korea’s biggest medical network and IT-based business platform consisting of 23,900 hospitals and clinics nationwide.

 

Green Cross Holdings anticipates the existing business sectors covering traditional pharmaceutical business, genetic testing, diagnostic testing, medical checkup and many more would maximize the synergy effect in various healthcare sectors after it merges with UB Care.

 

Moreover, bio companies have also joined the colossal M&A market.

 

In last June, Celltrion signed a deal to take over the rights to Takeda’s Primary Care product assets from the Asia-Pacific markets for a total of USD 278 million (approximately 330 billion won).

 

The deal would grant the company all rights over the 18 products available in nine markets including South Korea, Thailand, Taiwan, Hong Kong, Macao, the Philippines, Singapore, Malaysia and Australia.

 

The list of the product assets ranges from prescription drugs like antidiabetic drug ‘Nesina’ and ‘Actos,’ antihypertensive drug ‘Edarbi,’ to OTC drugs like cold drug ‘Whituben’ and stomatitis drug ‘Albothyl.’ In last September, HLB Group acquired Mediforum (previously C-Tri).

 

HLB, HLB Life Science and top shareholders of HLB invested total 16.6 billion won.

 

A biopharmaceutical company Vivozon used its subsidiary to merge with Inist Bio Pharmaceutical.

 

Lumimicro inked a contract to obtain 89.57 percent of Inist Bio Pharmaceutical shares for 60.9 billion won.

 

After merging with the company, Lumimicro re-launched itself as Vivozon Healthcare.

 

Lumimicro manufactures and sells compound semiconductor.

 

Ultimately, Vivozon is merging with Inist Bio Pharmaceutical and taking over the company’s management.

 

Established in 2008, Vivozon is a biopharmaceutical company developing new drugs.

 

Currently, the company is conducting a clinical trial to develop non-narcotic painkiller ‘VVZ-149’ administering to manage post-surgery pain and neuropathic pain.

 

Regardless of the failed attempt to merge, Genexine successfully acquired Toolgen.

 

Genexine secured 16.64 percent of Toolgen’s share and became the biggest shareholder of the company.

 

.Genexine is currently developing immunotherapy and gene vaccine

 

.At the moment, the company is working on global clinical trials in immunotherapy ‘hyleukin-7’ and gene vaccine against cervical cancer

 

.Toolgen owns source technology on third generation CRISPR/Cas9 genome editing, which the company uses it to develop gene therapy

 

.◆Yuhan, Boryung and Huons actively invest externally The pharmaceutical companies were particularly active this year in investing on biopharmaceutical companies

 

.By shaking hands with bio companies for R&D partnership, the pharmaceutical companies aim to seek the next big opportunity

 

.Yuhan Corporation has been fruitful with lazertinib the company took over from Oscotec and licensed out to Janssen

 

.Yuhan spent 38 billion won on four companies as equity investment

 

.In April, the South Korean company invested in Mediogen for 23 billion won

 

.Specializing in probiotics, Mediogen is the biggest shareholder of GI Innovation with 20.79 percent of the share

 

.With Mediogen’s 19.82 percent share gained, Yuhan is now the second biggest shareholder of the company

 

.The company invested quadruple of its last year operating income at 12.5 billion won in an external company for emerging opportunity

 

.Early this year, Yuhan also invested total 15 billion won, or 5 billion won each on Huinno, Amyloid Solution and GI-Biome

 

.Boryung Pharmaceutical reported its nine outward investments took place this year spending total 29.1 billion won

 

.In last July, Boryung Pharmaceutical had decided to invest 24 billion won on a U.S.-based global healthcare investment fund Hayan1 L.P, an investment fund company operated by Boryung’s U.S

 

.branch Hayan Health Network, established for the purpose of healthcare sector investment

 

.Hayan1 fund would seek and invest on promising global bio venture based on 24 billion won Boryung paid out

 

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