Koasteam, 41 Billion KRW Convertible Bonds... Utilized for Phase 3 Clinical Trial Costs

[Asia Economy Reporter Hyungsoo Park] Corestem, a developer of stem cell therapeutics, is raising operating funds by issuing convertible bonds (CB) for the first time since its listing in 2015.

Corestem announced on the 25th that it will issue 41 billion KRW worth of 4-year maturity convertible bonds, with Mirae Asset Investment Securities as the lead underwriter. Institutional investors, including Rhinos Asset Management, will subscribe. The conversion price is set at 18,672 KRW per share.

Kim Kyung-sook, CEO of Corestem, said, “Institutional investors trust Corestem’s corporate value and growth potential, allowing us to raise funds under favorable conditions.”

Corestem plans to use the funds secured through the convertible bonds to invest in future projects such as conducting Phase 3 clinical trials, facility expansion, and research and development. The company expects its corporate value to increase in the mid to long term as its bio business gains momentum.

It is anticipated that by securing funds to expand overseas production facilities that meet Good Manufacturing Practice (GMP) standards, Corestem will establish advantageous conditions for future technology export negotiations with global pharmaceutical companies.

In January, Corestem confirmed the intention of overseas pharmaceutical companies to participate in license negotiations at the ‘JP Morgan Healthcare Conference,’ the world’s largest pharmaceutical and bio exhibition. The company is preparing for overseas expansion.

Corestem is preparing to conduct Phase 3 clinical trials of Neuronata-ALJ, a stem cell-based treatment for amyotrophic lateral sclerosis (ALS, Lou Gehrig’s disease), with simultaneous approval from the Korean Ministry of Food and Drug Safety and the U.S. Food and Drug Administration (FDA).

The Phase 3 trial will be conducted domestically at five hospitals?Hanyang University, Seoul National University, Seoul Samsung, Korea University Anam, and Yangsan Pusan National University Hospital?targeting 115 ALS patients. The trial is designed to include long-term (1 year) administration and observation five times, reflecting consultations with the FDA. Corestem will bear the entire trial cost, estimated at approximately 20 billion KRW.

The published results of Neuronata-ALJ’s Phase 1 and 2 trials have been recognized by related international academic societies such as the European Academy of Neurology (EAN). Overseas pharmaceutical companies have shown great interest in this.

Corestem, a company specializing in developing stem cell therapies for rare intractable diseases, recently completed Phase 1 clinical trials for multiple system atrophy (MSA) and lupus treatments and has embarked on follow-up development research.

This content was produced with the assistance of AI translation services.