South Korea’s institutional investors and securities firms will invest 12 billion won ($9.51 million) in Austrianova, a cutting-edge biotech firm located in Singapore.

According to the investment banking industry on Thursday, Austrianova is currently in talks with Korean investors, including Hana Financial Investment, SK Securities, and M Capital, to pool 12 billion won in preferred stock investment. K&T Partners leads the deal.

Austrianova holds a novel and proprietary technology for the encapsulation of living mammalian and bacterial cells, using cellulose sulfate-based materials. Its encapsulation technology is widely used not only in the drug discovery medical fields but also in the healthcare and livestock market.

The firm’s pancreatic cancer medicine, currently under development, is undergoing a phase 2 clinical trial and the U.S. Food and Drug Administration (FDA) has designated it as an orphan drug. It signed a deal to provide probiotics for animals with ProAgni, an Australia-based biotech firm. It also concluded a deal with L’Oreal, a multinational cosmetic firm, to provide probiotics for cosmetic and personal care products.

Austrianova, preparing to debut in the Korean stock market via a special listing for tech firms, has selected Eugene Investment & Securities as its lead manager.

By Kang Doo-soon and Jenny Lee

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