CrystalGenomics to sell largest 20% stake to Invites Healthcare for $44 mn

CrystalGenomics Inc., South Korea’s first-generation biopharma venture company, will sell new shares worth 58 billion won ($44 million) in a bid to gain new growth momentum under Invites Healthcare Co., a Korean digital healthcare company.

The biopharma company listed on Korea’s tech- and bio-heavy junior Kosdaq market announced on Monday in a regulatory filing that it will issue a total of 19.65 million shares to Newlake Invites Investment at a face value of 500 won apiece.

Of the total shares, some 15 million are redeemable convertible preferred shares (RCPS), and the rest are common shares. CrystalGenomics will use the total proceeds worth about 58 billion won as working capital, according to the filing.

Once Newlake Invites completes the acquisition of the new shares by June 2, it will become the largest stakeholder in CrystalGenomics with a 19.81% stake.

Newlake Invites is fully owned by Invites Investment under Invites Healthcare, a digital healthcare joint venture set up in March 2020 by Korea-based private equity firm Newlake Alliance Management and the country's top mobile carrier SK Telecom Co. with an investment of 45 billion won by each party.

CrystalGenomics’ current largest shareholder Cho Joong-myung has decided to keep his 7.52% stake in the company but the founder and chairman’s stake will be lowered to 5.9% after the new share sales.

SYNERGY BETWEEN CRYSTALGENOMICS AND INVITES HEALTHCARE

The latest share sale is expected to create synergy between CrystalGenomics and Invites Healthcare in the development of not only anti-cancer drugs but also genomic medicines and digital treatments, the company said.

Founded in 2000, CrystalGenomics is the first Korean bio venture company that has earned marketing approval for the country’s first new chemical drug Acelex (polmacoxib), its next-gen tissue-specific nonsteroidal anti-inflammatory drug for the treatment of osteoarthritis.

It also owns an extensive new drug pipeline, including anti-fibrotic and metabolic disease treatment CG-745 and anti-infective drug CG-549. It is also carrying out clinical trials of Camrelizumab, an antibody candidate against solid cancer licensed out by China’s Jiangsu Hengrui Medicine Co., in Korea to get new drug approval.  

Invites Healthcare is seeking to build a comprehensive digital healthcare system in Korea in partnership with Seoul National University Hospital.

It has created the so-called Invites ecosystem, consisting of five companies -- Konex-listed Invites Biocore Co., Invites Healthcare, HealthConnect Co., Invites Genomics and Invites Procagen.

The Invites companies specialize in digital healthcare businesses, ranging from diagnostic medical testing and imaging to medical big data.

With CrystalGenomics under its arms, its R&D portfolio is broadened to include a new drug development business.

CrystalGenomics shares zoomed 27.5% to end at 4,590 won on Tuesday.

Write to Yoo-Rim Kim at youforest@hankyung.com

Sookyung Seo edited this article.