HLB Life Science Expands Stake in HLB Following NDA Submission in the US

Confidence in New Drug Approval for Lenvatinib Liver Cancer Treatment, 'Proactive Investment Executed'
Utilizing HLB Pharma CB Funds to Acquire HLB Shares

HLB Life Science recently completed a new drug application (NDA) with the US FDA and showed confidence in the drug approval by expanding its stake in HLB. This move aims to increase future corporate value by acquiring HLB shares ahead of the drug approval.

On the 23rd, HLB Life Science announced that it acquired 237,100 shares of HLB held by its subsidiary, HLB Cell. The funding was secured by utilizing convertible bonds (CB) of HLB Pharmaceutical held by HLB Life Science.

Some of the near-maturity CBs of HLB Pharmaceutical were sold over-the-counter. Additional HLB shares held by HLB Cell were acquired. To strengthen the governance structure, the remaining CBs were converted into 747,495 shares, expanding HLB Pharmaceutical’s stake to 14.6%. HLB Life Science stated that HLB has completed the NDA with the US FDA. Following the ongoing review by the Korean Ministry of Food and Drug Safety for cholangiocarcinoma, it plans to lead the approval process for rivoceranib in the hepatocellular carcinoma field as well.

On the 16th (US time), HLB submitted an NDA to approve the combination therapy of rivoceranib and camrelizumab as a first-line treatment for hepatocellular carcinoma.

As of the closing price on the 22nd, HLB’s market capitalization stands at approximately KRW 4.4629 trillion. A significant improvement in corporate value is expected upon drug approval. After the approval of Lenvima, Japan’s Eisai saw its market capitalization increase by more than KRW 20 trillion. Similarly, China’s Hansoh Pharmaceutical’s market cap grew to KRW 100 trillion within five years after rivoceranib’s approval in China. This is why HLB Life Science decided on proactive investment.

Rivoceranib is expected to be an effective new drug, showing the longest survival rate ever recorded at 22.1 months in global phase 3 clinical trial results.

Lee Dae-ho, Vice President and CFO of HLB Life Science, said, "Rivoceranib, which was first developed as a new drug candidate in 2004, has entered the official drug approval stage after 19 years. HLB Life Science, which holds the rights for all of Korea and parts of Europe and Japan, is well aware of rivoceranib’s outstanding efficacy, which is why we made a proactive investment."

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