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Kangstem Biotech strives to develop an innovative new drug for patients suffering from rare and incurable diseases.
News of Croen's Share Sale
25
2024.04
Kangstem Biotech has sold approximately 50% of its shares in its subsidiary Kroen to HLB Biostep.
Kangstem Biotech has sold approximately 50% of its shares in its subsidiary Kroen to HLB Biostep.
With this sale, HLB Biostep will become the largest shareholder of Kroen and will be in charge of the management of Kroen from now on.
Kangstem Biotech had previously organized Croen, a non-clinical CRO company, as a subsidiary to create synergies in R&D for the rapid development of stem cell therapies. However, all major pipelines have now entered the clinical stage, and the divestiture is necessary to reorganize the business through selection and focus, and to achieve the effect of improving the financial structure.
HLB BioStep, the largest non-clinical efficacy evaluation company in Korea, was selected as a partner for the divestiture because of its potential for Croen development and business synergies.
Through the acquisition of the stake, HLB BioStep will add Croen's toxicity testing technology capabilities to its existing non-clinical efficacy evaluation to provide a one-stop non-clinical CRO service covering the entire non-clinical testing process.
In addition, Kangstem Biotech's new pipeline of skin and Langerhans islets organoids will be utilized as an efficacy evaluation platform for the nonclinical services provided by Kroen and HLB Biostep. The mid- to long-term business cooperation is expected to expand, including the development of next-generation non-clinical efficacy evaluation test methods.