[Featured Stock] LG Chem, Acquiring US Nasdaq Biotech Company, Drops Over 2% Early in Trading

[Asia Economy Reporter Myunghwan Lee] LG Chem is showing a decline of over 2% in the early trading session on the 19th. Despite the news the previous day that it would acquire the U.S. Nasdaq-listed bio company 'AVEO Pharmaceuticals,' the stock price is struggling to gain momentum.

As of 9:31 a.m. on the day, LG Chem is trading at 598,000 KRW, down 2.13% (13,000 KRW) from the previous trading day.

LG Chem announced the day before that it will acquire AVEO Pharmaceuticals, a U.S. bio company holding an FDA-approved kidney cancer treatment. The acquisition amount is 566 million USD (approximately 800 billion KRW).

AVEO, established in 2002 and listed on Nasdaq in 2010, received FDA approval last year for the kidney cancer targeted therapy 'FOTIVDA.'

LG Chem stated that this acquisition will serve as an opportunity to secure commercialization capabilities for anticancer drugs in the U.S. within a short period and establish a foothold to launch self-developed new drugs in the largest pharmaceutical market, the U.S.

The securities industry also responded positively to this acquisition. Songyi Park, a researcher at Meritz Securities, said, "Through this acquisition, LG Chem secured an anticancer drug currently on the market," and added, "Based on the know-how of PACTIV, the first Korean new drug approved by the U.S. FDA, it is expected to serve as a foothold for future entry into the U.S. market."

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