Helixmith Appeals for Support of Current Management Team

[Asia Economy Reporter Jang Hyowon] Helixmith appealed to shareholders to oppose the proposed amendments to the articles of incorporation and director candidates suggested by some minority shareholders ahead of the July extraordinary general meeting of shareholders, and to support the current management.

On the 28th, Helixmith announced, "The director candidates proposed by some minority shareholders lack expertise and experience in managing a company in the bio industry," adding, "In particular, the outside director candidates appear to be acquaintances such as university classmates of the legal representatives of the shareholders who proposed the agenda, raising doubts about whether they can fulfill independent roles and responsibilities."

They also emphasized the lack of experience of the candidates proposed by minority shareholders in overseas innovative drugs (first-in-class). The CEO candidate, former Commissioner Choi Dong-gyu of the Korean Intellectual Property Office, recently mentioned in the media that "technology export is difficult as the patent period is nearing expiration."

In response, Helixmith pointed out on the 15th through the 'Fact Check' board on their website, "The patent for the original material of Engensis is valid until 2032 at the latest through the PTA (Patent Term Adjustment) and PTE (Patent Term Extension) systems, and exclusive sales are possible for 12 years under data exclusivity."

Helixmith plans to resolve the amendment of the articles of incorporation and the appointment of six directors at the extraordinary general meeting of shareholders scheduled for the 14th of next month. Minority shareholders plan to establish a new management team consisting of CEOs and directors without experience or expertise in the bio industry.

If the director candidates proposed by these minority shareholders are appointed, the existing management, including CEO Kim Sun-young and CEO Yoo Seung-shin, who participated in the early development of Helixmith's major pipeline 'Engensis (VM202),' will step down, which is expected to impact key clinical development projects.

Furthermore, Helixmith plans to successfully complete the U.S. Phase 3 clinical trial for Engensis (VM202) targeting diabetic peripheral neuropathy (DPN) by next year. Helixmith explains that if the current management steps down, the clinical trials will be delayed beyond the planned schedule, and responding to the U.S. FDA approval agency will inevitably become difficult.

A Helixmith official stated, "The current management, including CEOs Kim Sun-young and Yoo Seung-shin, who have conducted research, development, and clinical trials together, are highly regarded as top authorities in the gene therapy field both domestically and internationally," adding, "If the new management proposed by minority shareholders takes office, there is concern that numerous key decision-making processes related to clinical trials will be delayed or go in the wrong direction."

Meanwhile, Helixmith will conduct a proxy solicitation campaign targeting shareholders for 14 days starting from the 1st. The campaign encourages shareholders to support the appointment of inside director Park Won-ho and outside director Lee Sang-gon, and to oppose other agenda items.

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