Published date: November 1st, 2021
Investment and joint agreement with Novelgen, a virus treatment developer.
Expanding the pipeline to the field of virus treatment.
BioPlus (099430) announced on the 1st that it recently decided to invest about 3 billion won in Novelgen in a strategic stake through a board meeting and signed a joint development agreement for extensive virus treatments.
This investment will be conducted in the form of participation in a paid-in capital increase through a third-party allocation method. The acquired shares are 17,142 shares and the acquisition amount is 2.99.85 billion won. The share ratio after acquisition is 5.53%.
Novelgen is a company specializing in research and development of a wide range of virus treatments (antiviral drugs). Novelgen has an antiviral substance “NVG308” mini antibody pipeline that shows therapeutic efficacy regardless of the genotype of the virus.
Through this agreement, BioPlus and Novelgen plan to cooperate in concretely developing and commercializing discussions on the development, sale, and market of COVID-19 treatments ▲ joint research and development of viral skin diseases such as shingles, simple herpes, and human papilloma.
In particular, from the development of optimal substances and formulations for each indication to non-clinical and clinical, licensing, distribution, and sales, they agreed to cooperate with each other throughout the entire period of new drug development. Novelgen focuses on developing key substances in the treatment of viruses that cause skin diseases. BioPlus will be in charge of substance production, clinical trials, licensing, and sales. The global overall virus treatment market is expected to grow to $60 billion by 2028.
“The recent investments and strategies being pursued to expand the bio business are the result of the company’s gradual implementation of plans since 10 years ago,” said Jeong Hyun-kyu, CEO of BioPlus. “With this Novelgen investment agreement, the business structure announced at the time of the IPO has a framework.”
Meanwhile, BioPlus’s securing of the virus treatment pipeline is part of its strategy to strengthen its bio-business, and the company recently invested about 2.6 billion won in Ubiprotein to enter the improved botulinum toxin and obesity treatment market. In addition, on the 16th of last month, a land contract in the Seongbon Industrial Complex, where Eumseong-gun, Chungcheongbuk-do, is participating as an investor, and a new complex production base is set to begin next year.