Genexine Sells Stake in Joint Venture Ajinomoto Genexine, Securing 19.3 Billion KRW in Cash

Genexine announced on the 28th through a public disclosure that it plans to sell all its shares in Ajinomoto Genexine, a joint venture with Japan's Ajinomoto, to Ajinomoto and secure 19.3 billion KRW in cash.

The new headquarters of Genexine, 'Genexine Progen Bio Innovation Park' (left building), located in Magok, Gangseo-gu, Seoul. On the right is the research institute of its affiliate Handok, 'Handok Future Complex.'
[Photo by Lee Chunhee]

Ajinomoto Genexine is a cell culture media manufacturing and sales company established in 2012 as a joint venture between Genexine and Ajinomoto. Through this transaction, Genexine will transfer all 7.14 million shares (25% stake) it holds in Ajinomoto Genexine to Ajinomoto. The 19.3 billion KRW secured through this deal is described as cash corresponding to an investment return rate of over 115%.

Neil Worma, CEO of Genexine, stated, "We are focusing on strengthening our financial position by securing nearly 20 billion KRW in cash with a high investment return rate," adding, "This is a strategic decision to secure non-dilutive funds to prevent dilution of shareholder value while not delaying the development of pipelines in late stages."

Genexine plans to use most of the cash secured from this transaction for research and development (R&D). The funds will be utilized for pipeline development, including the Phase 3 clinical trials of 'GX-E4,' a long-acting anemia treatment candidate for chronic kidney disease currently being developed with partners in Asia including China, and 'GX-H9,' a pediatric growth hormone formulation.

Meanwhile, Genexine announced the day before that the receipt date of the $8 million (approximately 9.8 billion KRW) upfront payment from Indonesia's KG Bio for the technology transfer related to GX-E4 has been delayed from the original 'by June 2023' to 'December 2023.' On the same day, Genexine also disclosed an investment of 29.42 billion KRW to build the Genexine Consortium R&D Center in Magok, Gangseo-gu, Seoul. A Genexine representative explained, "All three disclosures are separate matters," adding, "For the new facility investment, funds will be raised through a separate project financing (PF)."

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