Ildong Pharmaceutical rose more than 7% in early trading on the 14th. Buying appears to be driven by news that the company decided to merge by absorption with its new drug research and development (R&D) affiliate, Yunovia.
As of 9:18 a.m. on the day, Ildong Pharmaceutical was trading on the Korea Exchange at 28,750 won, up 2,050 won (7.68%) from the previous session.
Ildong Pharmaceutical held a board meeting the previous day and resolved to merge by absorption with Yunovia, its wholly owned subsidiary. The small-scale merger will proceed without issuing new shares, and the merger ratio between Ildong Pharmaceutical and Yunovia is 1 to 0. The record date for shareholders is on the 30th of this month, and the merger date is June 16.
Ildong Pharmaceutical said the decision on the merger aims to respond effectively to changes and growing uncertainties in the business environment and to strengthen business competitiveness.
An Ildong Pharmaceutical official said, "By internalizing R&D assets at headquarters and managing them in an integrated manner, we will pursue new drug development projects with greater continuity and contribute to enhancing shareholder value over the mid to long term."
Last year, Ildong Pharmaceutical, through Yunovia, secured topline data for Phase 1 clinical primary endpoints of its obesity treatment (GLP-1RA) candidate, and its P-CAB class new drug for peptic ulcer treatment, "Padoprazan," entered Phase 3 clinical trials, marking achievements in new drug research and development.