Binex Co., South Korea’s biomedicines developer and contract manufacturing organization (CMO), has invested $10 million in PeproMene Bio Inc., a U.S.-based developer of novel immune-oncology therapies such as chimeric antigen receptor T cell (CAR-T) therapy, making an inroad into the immuno-oncology treatment market.

The Korean company said on Wednesday that it has signed a mutual investment agreement with PeproMene Bio under which Binex will invest $10 million in PeproMene Bio to own a 10.3 percent stake in the California-based biotechnology company while PeproMene Bio will invest $5 million in Binex.

Following the agreement, the Korean pharmaceutical company said in a separate filing on the same day that it will issue new shares worth 5.3 billion won ($4.9 million) and assign them to PeproMene. The Korean drug company will issue a total 422,600 ordinary shares each priced at 12,600 won, and list them on April 4.

PeproMene Bio, a biotechnology company focusing on CAR-T therapy, was co-founded by Kim Hong-woo, an expert on anticancer treatments who in the past worked for HanAll Biopharma Co., City of Hope, a top rated cancer hospital in the U.S., and Larry Kwak, a world-renowned physician in the field of immunology and cancer vaccines.

CAR-T therapy is a personalized treatment that collects immune system cells or T cells from a patient’s blood before modifying them by adding chimeric antigen receptor (CAR) and infusing them into the patient to better kill specific cancer cells.

Existing anti-cancer treatments have response rates of about 30 percent while CAR-T therapy 80 to 90 percent with almost no side effects.

Ever since Switzerland-based healthcare company Novartis received approval for Kymriah, the world’s first CAR-T therapy, from the U.S. Food and Drug Administration, global pharmaceutical companies have been rushing to develop and market their own treatments.

An unnamed official from Binex said that the partnership with PeproMene Bio will allow the Korean company to secure research and development pipeline for CAR-T cell therapy and that it will put out efforts to introduce advanced cell treatment systems.

Shares of Binex closed at 13,150 won on Wednesday, down 5.05 percent or 700 won from the previous session.

By Kim Hye-soon and Lee Eun-joo

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]