Kospi-listed biopharmaceutical firm Thelma Therapeutics is going after local pharmaceutical distributor Songjeong Pharma to secure distribution network necessary for its investigational COVID-19 medicine under development.

The company said on Tuesday it has initiated due diligence to acquire Songjeong Pharma.

Songjeong Pharma established in 2008 is a dedicated distributor for antiviral products in Korea and its annual revenue reaches over 27 billion won ($22.8 million). The company has a track record of successes in bid for Japanese encephalitis shots for Japan’s procurement agency in 2009. It also delivered Tetanus-Diphtheria vaccines to Defense Acquisition Program Administration in Korea. It is also a major distributor of influenza and hepatitis vaccines to 600 public health centers, hospitals and clinics across the country.

Thelma Therapeutics is chasing Songjeong to preemptively establish extensive distribution network to create synergy with its COVID-19 cure that is currently under development, said the company’s chairman Yoon Byung-hak.

The company plans to complete the transaction within this month after due diligence in cooperation with an accounting company.

Thelma Therapeutics shares lost a fraction to trade at 8,330 won as of 11:20 am.

By Pulse

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