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Kangstem Biotech strives to develop an innovative new drug for patients suffering from rare and incurable diseases.
News of the completion of the sale of Croen's holdings
10
2024.05
Kangstem Biotech finalized the sale of its stake in HLB Biostep and its subsidiary Croen.
Kangstem Biotech finalized the sale of its stake in HLB Biostep and its subsidiary Croen.
In April, Kangstem Biotech decided to sell part of its stake in Croen to HLB Biostep, including the transfer of management control, and has been in the process of doing so. The purchase price is comprised of cash and HLB Biostep's perpetual convertible bonds. Following the transfer of control, Croen changed its name to HLB BioCode.
The collaboration between Croen and HLB BioStep will provide an integrated solution for toxicity and efficacy assessment. Kangstem Biotech will continue to hold more than 20% of Croen and will continue to collaborate with HLB Biostep on future outcomes, including Kroen's IPO.
We have realized a significant accounting gain from this transaction, which is sufficient to eliminate the listing risk arising from business losses. KOSDAQ-listed companies are required to be placed in management if their loss before tax to equity ratio exceeds 50% in two of the last three years. However, if there is a gain on disposal of equity, the loss before income taxes can be improved and excluded from this rule.
In addition, we will continue to work closely with HLB Biostep after the completion of the sale. Based on Kangstem Biotech's organoid technology and HLB Biostep's capabilities as the largest non-clinical efficacy evaluation company in Korea, the two companies will work together to research and develop animal replacement test methods using organoids and organoid-based therapies for rapid commercialization.
In June, the company will announce topline data from the Phase 3 clinical trial of atopic dermatitis stem cell therapy ‘Furestem-AD’ and MRI-based imaging data and expert evaluation results from the mid-dose group of the Phase 1 clinical trial of osteoarthritis therapy ‘Furestem-OA Kit’.