Polus BioPharm, a Korean developer of biologic drugs, said on Thursday it has signed a joint business agreement with affiliated companies Polus and Polus Holdings to join a biosimilar development project within Polus Group.

Polus Holdings is the largest shareholder of Polus with a 33 percent stake. Under the agreement, Polus BioPharm and Polus will merge, a proposal subject for approval from shareholders. The two will detail the merger plan at later date.

Shares of Polus BioPharm closed Thursday soaring by a daily limit high of 30 percent to 15,400 won ($14.27) on the news.

Polus was founded by key researchers from Celltrion and Samsung BioLogics, the country’s top two biosimilar manufactures, and the business combination aims to leverage on Polus’ research expertise and Polus BioPharm’s funding capability.

Polus BioPharm is responsible for marketing of biosimilar products and development and production of synthetic medicines for overseas markets.

Polus is speeding up the completion of a 250 billion won plant in Hwaseong, Gyeonggi, which will roll out first-generation biosimilar products.

A Polus BioPharm official said the company will seek to form a strategic partnership with local biotech firm Encuragen to develop a new type 2 diabetes drug and upgrade production facilities to meet cGMP requirements next year.

On Wednesday, Polus BioPharm said it agreed to acquire GTS Korea, a local manufacturer and distributor of cosmetics for 3.6 billion won for business diversification.

By Kim Hye-soon and Minu Kim

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