[Click eStock] "LegoChem, Major Shareholder Change... Secures Clinical Funding"

Korea Investment & Securities analyzed on the 16th that LegoChem Bio could secure clinical trial funding through the change of its largest shareholder. No investment opinion or target price was provided.

According to the Financial Supervisory Service's electronic disclosure system on the 15th, LegoChem Bio announced that it will enter into a third-party allotment paid-in capital increase worth 470 billion KRW and a share transfer agreement involving a largest shareholder change worth 78.7 billion KRW. The prospective largest shareholder is Pan Orion Corporation, an overseas investment entity of the Orion Group. They will invest approximately 548.7 billion KRW to acquire a 25.73% stake in LegoChem Bio.

Researcher Wi Haeju of Korea Investment & Securities stated, "This transaction is presumed to reflect the aligned interests of LegoChem Bio, which hoped for active clinical development to improve corporate value, and the Orion Group, which aims to enter the bio industry and establish future growth engines," adding, "The Orion Group showed direct interest in the bio business by incorporating Orion Biologics as a subsidiary on December 13 last year and increasing capital by 3.4 billion KRW."

With this largest shareholder change, LegoChem Bio is expected to actively proceed with clinical trials. Researcher Wi explained, "From LegoChem Bio’s perspective, securing funds equivalent to one-third of its market capitalization provides the advantage of pursuing the desired active clinical development," and added, "Since clinical trials in the U.S. cost about 300 million KRW per patient, they cannot start without stable funding."

He also said, "The funds will be invested in recruiting talent and clinical development costs necessary for the ongoing LCB84 Phase 1/2 clinical trials and the development of nine non-clinical and early-stage ADC pipelines solely owned by LegoChem Bio."

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