Reyon Pharma sells stake in ViroMed for W121b
[THE INVESTOR] Reyon Pharmaceutical has sold its entire stake in biotech firm ViroMed via a block deal, making over 12 times return on its investment.
It sold 560,944 shares of ViroMed at 120.9 billion won (US$108 million), a sizable jump from the drugmaker’s investment of 9.1 billion won.
The strong return came as ViroMed’s stock price has surged on the back of its gene therapy development. The KOSDAQ-listed stock now trades above 210,000 won. Shares were less than 10,000 won apiece when Reyon began its investment in 2007.
Currently, ViroMed is conducting phase 3 clinical trials on VM202 in patients with diabetic neuropathy and diabetic foot ulcers in the US.
Reyon plans to use the proceeds from divestments for its new 80 billion-won production facility in Chungju, North Chungcheong Province, as well as debt payment and other research and development.
“We thought it is the best time to turn a long-term investment into cash as the construction of the Chungju plant is in full swing,” an official at Reyon said.
Although the two companies put an end to their 15 years of equity partnership, they will continue to work together on the development of gene treatments.
Reyon has exclusive rights to manufacture and distribute ViroMed’s gene therapies.
By Park Han-na (firstname.lastname@example.org)