(Yicai Global) Sept. 5 -- Zhejiang Huahai Pharmaceutical Co. [SHA:600521] plans to invest USD30 million to acquire an 18.75% stake in Korean biotech company Eutilex Co. using its own funds.
Huahai Pharmaceutical signed an investment agreement with Eutilex on Sept. 1, it announced. After the investment, Huahai Pharmaceutical will become the second-largest shareholder of Eutilex, with its largest shareholder remaining its founder Dr. Byoung Se Kwon, with a shareholding ratio of 21.33%.
Huahai Pharmaceutical has also reached a product licensing agreement with Eutilex. Eutilex licensed Huahai Pharmaceutical to use an antibody research and development project which is at the clinical trial phase and so will charge initial and milestone payments of a maximum of USD8.5 million.
Byoung Se Kwon has more than 40 years of experience in immunology research. Eutilex mainly engages in research and commercial development of T cell therapy and immune antibodies and has developed a tumor cell treatment platform with proprietary intellectual property rights. The platform finds use in the treatment of many other diseases, such as lymphoma and breast cancer, etc.
Eutilex has outstanding innovative abilities in the field of cell therapy and immune antibody development. This investment will help it build a presence in the fields of cutting-edge cell therapies and oncology medicines based on its existing pharmaceutical products, Huahai Pharmaceutical noted. The pilot project holds the potential to produce a future global medical sensation.