Vivozon Pharmaceutical said on the 14th that it has decided on a paid-in capital increase worth 50 billion won.
It will proceed as a general public offering of forfeited shares after an allotment to existing shareholders. The new shares to be issued through the paid-in capital increase are 10,615,000 shares, amounting to about 50 billion won based on the expected issue price of 4,710 won. The final forfeited shares will be underwritten by the lead manager, NH Investment & Securities.
The company said the decision was aimed at strengthening sustainable business capabilities and securing financial flexibility. The company plans to use the funds raised to expand its sales and marketing capabilities to help the non-opioid analgesic Onapraju (ingredient name ofiranzolin hydrochloride), the nation's 38th homegrown innovative new drug, gain a foothold in the market.
A company official said, "Our financial capacity was weakened by large-scale research and development spending for Onapraju's marketing authorization and launch preparations," and added, "With this funding, we plan to push both the commercialization of the new drug and improvements in financial soundness." The official added, "We will do our best to quickly deliver business results for Onapraju and to enhance corporations value based on business structure efficiency."
Meanwhile, Vivozon Pharmaceutical on Sept. selected Korea Daiichi Sankyo, the Korean subsidiary of Japanese pharmaceutical company Daiichi Sankyo, as a co-promotion partner for Onapraju. The two companies plan to actively cooperate on Onapraju's domestic distribution and sales and marketing.