Huons Co. Ltd. announced a strategic KRW 14.3 billion ($10.4 million) investment in PanGen Biotech Inc., acquiring 2,647,378 shares to secure a 31.53% stake and become the largest shareholder. The South Korean pharmaceutical company plans to incorporate PanGen as a subsidiary following the acquisition of management rights through an extraordinary shareholders' meeting.
Strategic Expansion into Biopharmaceutical CDMO
The acquisition represents Huons' strategic push to strengthen its biopharmaceutical research and development capabilities while establishing a foothold in the contract development and manufacturing organization (CDMO) business. PanGen brings critical infrastructure including Good Manufacturing Practice (GMP) facilities for biopharmaceutical production and proprietary cell line development technology called "PanGen CHO-TECH."
Huons will acquire PanGen shares through a combination of purchasing from existing shareholders and participating in a paid-in capital increase via third-party allocation. The company concluded a stock purchase agreement with CG Invites, PanGen's previous largest shareholder, through a board of directors' resolution.
Human Hyaluronidase Development Partnership
The two companies have already established a collaborative relationship focused on human hyaluronidase development. In June, PanGen signed an entrustment contract with Huonslab, a Huons subsidiary, to produce clinical samples of human hyaluronidase and conduct validation for product approval.
Human hyaluronidase serves as a critical substance for converting intravenous formulations of anticancer and antibody drugs into more convenient subcutaneous formulations. The patent landscape presents significant opportunities, with Halozyme's Korean patent expiring in March and the US patent set to expire in 2027.
Huonslab received approval for the human hyaluronidase clinical trial plan (IND) from the Ministry of Food and Drug Safety in August, based on raw material produced by PanGen. The subsidiary is currently advancing development of this therapeutic approach.
Market Positioning and Future Outlook
A Huons official stated, "Through this acquisition, we'll incorporate PanGen as a subsidiary to boost sales and enter the new biopharmaceutical CDMO business. We intend to lead the healthcare market by maximizing synergy between affiliates."
The acquisition provides Huons with a stable production site for development and commercialization of biopharmaceuticals, including human hyaluronidase. The company expects the strategic move will create significant synergies between its affiliates and drive future growth in the global healthcare market.
Huons aims to expand its biopharmaceutical capabilities and enhance global competitiveness through this partnership, positioning itself to capitalize on the growing demand for subcutaneous drug formulations in oncology and antibody therapeutics.
