바이오스펙테이터

by Sungmin Kim

In a strategic move, Orion has successfully acquired LegoChem Biosciences (LCB), a prominent domestic antibody-drug conjugate(ADC) company, in a deal worth 550 billion won. Orion is Korea's leading food company known for its Choco Pie brand.

On the 15th, LegoChemBio decided to increase paid-in capital to Pan Orion, a subsidiary of Orion, worth 470 billion won, and signed a contract to sell the existing shares of CEO Kim Yong-joo and one other person for 78.7 billion won, giving Orion a 25.73% stake. It was announced that the largest shareholder had changed by securing a stake in. Orion owns 95.15% of Pan Orion.

According to the agreement, Pan Orion is set to acquire 7.96 million shares of LegoChem common stock at 59,000 won per share, totaling 470 billion won through a paid-in capital increase via third-party allocation. Additionally, 1.4 million shares (3.85%) will be purchased for 78.7 billion won directly from CEO Yong-Zu Kim (1.2 million shares) and chief financial officer (CFO) Sejin Park (200,000 shares), the founder and existing largest shareholder. This comprehensive deal secures a total of 25.73% for Orion, amounting to 548.7 billion won.

The execution of the third-party allocation of paid-in capital increase and payment for existing stock purchase is scheduled for March 29.

In an effort to maintain stability despite the change in the largest shareholder, LegoChemBio has confirmed that the current management and operating system, including CEO Kim Yong-joo, will remain unchanged in the future.

Yong-Zu Kim, President and CEO of LegoChem Biosciences expressed, “Orion has shown understanding of the special industry of new drug research and development, making them the ideal partner for the future.” He emphasized that the partnership was sought to ensure stable operations and to support LegoChem Bio's ambitious growth strategy.

Earlier this year, LegoChem Bio outlined its 'VISION 2030', aiming to discover over 5 candidate substances annually and secure at least 5 additional clinical stage pipelines within 5 years. The funds secured through this strategic contract will propel the company towards becoming a global leader in ADC by intensifying research and development efforts.

The emergence of ADCs in the global pharmaceutical industry as a driving force behind this strategic decision

CEO Kim said, “Over the past two years, ADC has rapidly emerged as a mainstream anticancer drug, as represented by ‘Enhertu’, and global big pharma companies have entered the ADC field through M&A or licensing of leading ADC companies such as Seagene and Immunogen.” “In this environment, we decided to conduct more aggressive research and development to catch up with leading competitors and beat latecomers,” he said.

CEO Kim said, “To achieve these goals, we need about 1 trillion won in research and development funds over the next five years,” adding, “In addition to the 220 billion won in funds the company currently holds and hundreds of billions of won in revenue from license and collaboration agreements expected within the next few years, an additional 500 billion won will be needed.” He explained, “We wanted to secure this funding through this strategic partnership with Orion.”