FutureChem acquires Kai Healthcare for W5b
[THE INVESTOR] Korea’s nuclear med maker FutureChem said on Sept. 8 it has bought the entire stake of Kai Healthcare for 5 billion won (US$4.43 million) to bolster manufacturing capability for its drug candidates.
The acquisition comes as Seoul-based FutureChem prepares to enter the US market with its flagship injectable for diagnosing Parkinson’s disease called FP-CIT and global clinical trials on other radiopharmaceuticals for diagnosing Alzheimer’s disease and cancer.
“The deal will contribute to the stable production and supply of new drugs including a proposed treatment for the diagnosis of Alzheimer’s disease, which is awaiting domestic approval, and the expansion of existing radiopharmaceutical supply,” a FutureChem official said.
Shares of FutureChem rose 4.04 percent to 16,750 won as of 12:40 p.m.
Founded in 2003, Kai Healthcare specializes in nuclear medicine, with three production facilities that can manufacture radioactive tracer called fludeoxyglucose, or FDG, in Seoul and Gyeongsang Province.
The firm plans to invest additional 5 billion won in the plants to upgrade them to be compliant with the principles and guidelines of Good Manufacturing Practice for commercial activities.
“We expect to see visible results in overseas markets from next year as we are awaiting marketing approval from the US Food and Drug Administration for FP-CIT,” the official said.
Nuclear medicines are primarily drugs that contain radioactive substance for radionuclide-emitting ionizing radiations. Their core application lies in the diagnosis and treatment of various diseases that conventional medicines fail to achieve.
By Park Han-na (email@example.com)