South Korea’s HLB is gaining speed in its plan to commercially develop a targeted anticancer therapy called rivoceranib through a triangular merger involving its U.S. affiliate and the drug’s original developer Elevar.

Following the deal officially signed by the three companies last Friday, HLB Life Science, a Korean subsidiary of HLB and the second largest shareholder of Elevar, said in a regulatory filing Tuesday it has agreed to transfer its 325,010 Elevar shares to HLB USA to facilitate the merger. In return, HLB Life Science is entitled to receive 586,098 HLB shares plus $3.97 million cash in addition to a milestone payment of $3.97 million related to the drug’s New Drug Application (NDA) and global launching.

Elevar’s key founding members including Paul Chen, the original developer of rivoceranib, already gave a nod to the merger.

With the merger, HLB will fully own Elevar to become the owner of rivoceranib which could be a global blockbuster drug based on its positive clinical data.

HLB is seeking commercial development of the drug from next year, while planning to get five additional indications over the next five years through extensive clinical trials spanning gastric cancer and other cancer types.

The merger also looks positive to HLB Life Science as its ownership of listed HLB shares enable a quick conversion into cash and ensure more transparency in accounting practice. With its latest transaction, HLB Life Science’s unrealized security ownership is valued at more than 70 billion won based on the Oct. 15 closing price of HLB in addition to $12 million cash in the future.

By Pulse (translation)

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