HLB Group "Acquires GTreeBNT... Secures COVID-19 Vaccine Distribution and New Drug Pipeline"

[Asia Economy Reporter Hyunseok Yoo] HL Biopharma Group has initiated the acquisition of GTreeBNT. On the 13th, GTreeBNT announced through a public disclosure that it will secure liquidity by conducting a third-party allotment capital increase worth 40 billion KRW and issuing convertible bonds worth 50 billion KRW targeting Next Science, HL Biopharma, and others.

This capital increase involves six group companies including HL Biopharma, Next Science, HL Biopharma Pharmaceutical, HL Biopharma Cell, and HL Biopharma Investment, effectively making it an HL Biopharma consortium acquisition of GTreeBNT. It is expected that HL Biopharma’s recommended executives will be appointed at the extraordinary general meeting scheduled for October 29.

GTreeBNT is currently developing the dry eye treatment ‘RGN-259’ through its U.S. subsidiary ‘ReGenTree,’ having completed Phase 3 clinical trials in the U.S. and preparing to apply for a Pre-BLA meeting with the FDA. Another U.S. subsidiary, ‘Oblato,’ is conducting Phase 2 clinical trials for ‘OKN-007,’ a glioblastoma (GBM) treatment designated as an orphan drug by the FDA.

Since merging with the vaccine distribution specialist company ‘YS Pharm’ in 2018, GTreeBNT has also established dedicated cold chain facilities for vaccines, distributing AstraZeneca, Janssen, Pfizer vaccines nationwide. Additionally, it is conducting various clinical trials including Phase 2 for epidermolysis bullosa and Phase 3 for neurotrophic keratitis.

The HL Biopharma Group’s acquisition of GTreeBNT, led by Next Science, is expected to create synergy with the ongoing bio-business of GTreeBNT. This acquisition has also paved the way for domestic distribution of NanoGen’s COVID-19 vaccine ‘NanoCovax,’ for which HL Biopharma recently secured global rights.

In particular, the development speed of ongoing clinical trials is expected to accelerate through strengthened human and technological cooperation with HL Biopharma’s U.S. subsidiaries ‘Eleva,’ ‘Immunomic,’ and ‘Verismo’ involved in various new drug development projects in the U.S.

If Next Science becomes the largest shareholder of GTreeBNT in the future, it is anticipated to significantly strengthen the bio-business by leading cooperation with its subsidiary DandiBio and affiliate NanoGen. HL Biopharma Pharmaceutical is expected to benefit in corporate value as an advanced base for new drug production within the HL Biopharma Group, especially if additional production pipelines expand.

Meanwhile, after announcing on March 18 that the Phase 3 clinical trial results of ‘RGN-259’ did not show statistical significance in the primary endpoints of ocular discomfort and corneal staining scores in the inferior corneal region, GTreeBNT’s stock price has continued to decline, apparently causing difficulties in fundraising.

With the large-scale liquidity secured through HL Biopharma Group’s investment, GTreeBNT plans to accelerate ongoing clinical trials and focus on prompt new drug approval. GTreeBNT CEO Yang Won-seok is reported to remain as Chief Technology Officer (CTO) to continue leading new drug development.

Kim Jong-won, CEO of Next Science, stated, “HL Biopharma Group and GTreeBNT share many commonalities such as COVID-19 vaccines and global new drug development, so we expect high synergy in many areas including human and technological exchanges and distribution network sharing. We will do our best to complete the remaining acquisition procedures by the shareholders’ meeting on the 29th of next month to ensure growth for both HL Biopharma Group and GTreeBNT, as well as benefits for existing shareholders.”

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