Huons Boosts Biopharma with Human Hyaluronidase, Acquires PanGen Stake

Huons Co., Ltd., based in SEONGNAM, South Korea, has announced its decision to acquire a significant share of PanGen Biotech Inc. In a move involving an investment of KRW 14.3 billion, Huons will purchase 2,647,378 shares of PanGen. This acquisition will be achieved through buying shares from existing shareholders and a paid-in capital increase via third-party allocation. Furthermore, Huons has entered into a stock purchase agreement with CG Invites, the current largest shareholder of PanGen, following a resolution by Huons' board of directors.

Post-acquisition, Huons will hold a total of 3,983,167 shares in PanGen, translating to a 31.53% ownership, making Huons the largest shareholder. This strategic acquisition will allow Huons to secure management rights over PanGen through an extraordinary shareholders’ meeting, ultimately incorporating PanGen as a subsidiary.

The primary objective of this acquisition for Huons is to bolster its research and development capabilities in the biopharmaceutical sector and expand its contract development and manufacturing organization (CDMO) operations. PanGen is renowned for its Good Manufacturing Practice (GMP) compliant facilities dedicated to biopharmaceutical production. Additionally, it possesses the 'PanGen CHO-TECH', a proprietary cell line development technology, and has robust productization capabilities.

Earlier this year, in June, PanGen entered into a contract with Huonslab, a subsidiary of Huons, to produce clinical samples of human hyaluronidase and conduct validation processes required for product approval. Human hyaluronidase is an important substance that facilitates the conversion of intravenous (IV) formulations of medications, such as anticancer and antibody drugs, into subcutaneous (SC) formulations. With the Korean patent previously held by Halozyme having expired in March, and the US patent set to expire in 2027, Huonslab is actively developing this product. In August, Huonslab received approval from the Ministry of Food and Drug Safety for its clinical trial plan (IND) for human hyaluronidase, leveraging raw materials produced by PanGen.

Huons sees this acquisition as a strategic move to secure a stable production base for the development and commercialization of biopharmaceuticals, including human hyaluronidase. A representative from Huons expressed that incorporating PanGen as a subsidiary through this acquisition will not only enhance sales but also allow Huons to enter the burgeoning biopharmaceutical CDMO market. The company aims to leverage the synergies between its affiliates to lead the healthcare market effectively.

Ultimately, Huons anticipates that this acquisition will significantly expand its biopharmaceutical capabilities and strengthen its competitive edge on a global scale. The integration of PanGen’s advanced technological and production capabilities with Huons' strategic direction is expected to foster innovation and growth within the company and the broader healthcare industry.