In early trading on the 18th, Solux jumped 28%. Investor sentiment appeared to be buoyed by news that unlisted Aribio, which is pursuing a merger, signed an exclusive licensing deal worth 7 trillion won with China's Fuxing Pharmaceutical.
As of 9:14 a.m. that day on the KOSDAQ market, Solux was trading at 6,010 won, up 440 won (7.9%) from the previous session. Solux also surged 28% in early trading that day. Previously, through the day before, it hit the upper limit (the top of the daily price limit) for two straight sessions.
Earlier, Aribio said it signed an exclusive licensing agreement with China's Fuxing Pharmaceutical for the global development and commercialization of AR1001. AR1001 is an oral Alzheimer's disease drug candidate under development by Aribio. The total contract value is $4.7 billion, about 7 trillion won.
Under the deal, Aribio will first receive a $60 million upfront payment (90 billion won) and an additional $80 million (about 120 billion won) upon topline readout of the global phase 3 trial. It is also structured to include stage-based regulatory and commercialization milestones and royalties of up to 20%.
Solux is pursuing a merger with Aribio. The merger date is Aug. 11. Previously, Aribio sought to list on the KOSDAQ through an IPO, but after being turned down multiple times by the financial authorities, it is preparing to list on the KOSDAQ by merging with existing listed company Solux.
As investment in unlisted Aribio is difficult, sentiment appears to have shifted toward Solux, which is preparing the merger.