PanGen Biotech, Inc.

SEONGNAM, South Korea--( BUSINESS WIRE )-- Huons Co., Ltd. (KRX:243070) (Co-CEOs : Song Soo-young and Yoon Sang-bae) announced on November 5 that it has decided to acquire 2,647,378 shares of PanGen Biotech Inc. (Co-CEOs : Yoon Jae-seung and Jung In-cheol) by investing KRW 14.3 billion. Huons will own PanGen shares through the acquisition of existing shareholders and a paid-in capital increase via third-party allocation. Huons also concluded a stock purchase agreement with CG Invites, the existing largest shareholder of PanGen, through a board of directors’ resolution. The company will also acquire new shares issued by PanGen. After the acquisition, Huons will own a total of 3,983,167 shares, representing a 31.53% stake to be PanGen’s largest shareholder. After the acquisition, Huons plans to secure management rights through an extraordinary shareholders’ meeting of PanGen and incorporate it as a subsidiary. Huons intends to strengthen its biopharmaceutical R&D expertise and contract development and manufacturing organization (CDMO) business through this acquisition. PanGen is equipped with Good Manufacturing Practice (GMP) facilities for biopharmaceutical production, and ‘PanGen CHO-TECH’, a cell line development source technology, and productization capabilities. In June, PanGen, a raw material producer of human hyaluronidase, signed an entrustment contract with Huonslab, a Huons subsidiary, to produce clinical samples for ‘human hyaluronidase’ and conduct validation for product approval. Human hyaluronidase is used as a substance that can conveniently convert intravenous (IV) formulations such as anticancer and antibody drugs into subcutaneous (SC) formulations. The patent currently held by Halozyme expired in Korea in March. The US patent will expire in 2027. In preparation, Huonslab received approval for the human hyaluronidase clinical trial plan (IND) from the Ministry of Food and Drug Safety in August based on the raw material (DS) produced by PanGen and is in the course of developing it. Huons evaluates it has secured a stable production site for development and commercialization of biopharmaceuticals including human hyaluronidase. A Huons official said, “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.” Huons expects to create more synergies between affiliates following the latest move. Notably, it aims to expand its capabilities in biopharmaceuticals and ultimately enhance its global competitiveness.

Huons Co. Ltd. has announced a strategic investment of KRW 14.3 billion ($10.4 million) in PanGen Biotech Inc. to strengthen its biopharmaceutical R&D and CDMO capabilities. The investment will see Huons acquire 2,647,378 shares of PanGen, giving it a 31.53% stake in the company. Following the acquisition, Huons plans to secure management rights and incorporate PanGen as a subsidiary. PanGen brings to the table GMP facilities for biopharmaceutical production, as well as a proprietary cell line development technology known as “PanGen CHO-TECH.” This technology, coupled with PanGen’s productization capabilities, aligns well with Huons’ strategy to expand its biopharmaceutical offerings. The two companies have already established a collaborative relationship. In June, PanGen signed a contract with Huonslab, a Huons subsidiary, to produce clinical samples of human hyaluronidase and conduct validation for product approval. Human hyaluronidase is a key ingredient in the development of subcutaneous formulations for various drugs, including cancer treatments and antibody therapies. By acquiring a significant stake in PanGen, Huons aims to accelerate its entry into the biopharmaceutical CDMO business and solidify its position in the global healthcare market. The company believes that this strategic move will create significant synergies between its affiliates and drive future growth.

Huons has announced the acquisition of biopharmaceutical company PanGen to expand its research and development (R&D) and contract development and manufacturing organization (CDMO) capabilities. Led by Song Sooyoung and Yoon Sangbae, Huons confirmed on Nov. 5 that it will invest 14.3 billion won ($10.3 million) in PanGen Biotech. PanGen, headed by CEOs Yoon Jae-Seoung and Jung In-cheol, was acquired by Huons for 2.6 million shares. The acquisition involved both a third-party allotment and the purchase of existing shares. Huons’ board of directors signed a stock purchase agreement with CG Invites, the former largest shareholder of PanGen. Following the purchase of new shares issued by PanGen, Huons will become the largest shareholder with a 31.53 percent stake, holding just under four million shares. Once the acquisition is finalized, Huons plans to secure management rights through an extraordinary meeting of PanGen shareholders, making the company a Huons subsidiary. The acquisition aims to strengthen Huons’ biopharmaceutical R&D and CDMO capabilities. Huons will leverage PanGen’s resources, including its good manufacturing practice (GMP) facilities for biopharmaceutical production, product commercialization and the proprietary PanGen CHO-TECH cell line development technology. In June, PanGen signed a validation consignment contract with Huons Global’s subsidiary Huons Lab for the clinical sample production and product approval of human-derived hyaluronidase, a pharmaceutical material used for subcutaneous delivery of oncology or antibody drugs. Halozyme’s patent for this enzyme expired in Korea this March, with the U.S. patent expiring in 2027. With this opportunity, Huons Lab has received Ministry of Food and Drug Safety (IND) approval for clinical trials, and development is ongoing. Through the PanGen acquisition, Huons has secured a stable production base to develop and commercialize human-derived hyaluronidase as well as other biopharmaceuticals. “With the acquisition of PanGen, we expect increased profits and a strong entry into the biopharmaceutical CDMO sector,” said a Huons representative. “We aim to lead the health care market by maximizing synergies among our subsidiaries.” With its expanded biopharmaceutical capacity, Huons is set to enhance its competitive edge in the global market.