The merger plan between HLB and HLB Science was approved at HLB Science's extraordinary shareholders meeting. As a result, the "integrated HLB," which unifies research and development (R&D) and management systems into one, is set to officially launch on Dec. 31.
HLB Science said on the 13th that it finally approved the merger plan with HLB at an extraordinary shareholders meeting held at its headquarters in Songpa-gu, Seoul. A total of 71.4% of issued common shares attended the meeting, and 99% of them voted in favor. Earlier, HLB held a board meeting for a small-scale merger and decided to proceed with the merger.
Because no termination conditions such as a cap on the payout for exercising appraisal rights were set, the procedure is expected to be completed as scheduled. The merger ratio is 0.0446318 HLB Science shares per 1 HLB share, with HLB as the surviving entity and HLB Science to be dissolved. The new shares to be issued through the merger total 796,312, equivalent to about 0.6% of HLB's total issued shares.
The company said the integration will significantly improve research and development efficiency by combining the two companies' new drug development capabilities and research infrastructure. HLB plans to strengthen end-to-end new drug development competitiveness from discovery to commercialization by adding HLB Science's peptide-based early candidate discovery technology to HLB's anticancer clinical development capabilities.
It also plans to expand its oncology-centered pipeline to sepsis, metabolic diseases, and immune diseases to raise the scope and level of research and development. The clinical development of "DD-S025P," a treatment for sepsis and gram-negative superbug infections, is also expected to gain momentum. The company plans to submit the next investigational new drug (IND) application to the U.S. Food and Drug Administration (FDA) within the year.
The company expected that the merger will eliminate organizational and functional overlap, streamline the expense structure, and improve management efficiency through unified processes across research and development, management, and operations. Based on this, the company plans to strengthen financial soundness and cash flow stability to simultaneously pursue improved profitability and enhanced shareholder value.
Baek Yoon-gi, chief executive officer of HLB, said, "This merger is a turning point in strategically reorganizing the group's research and development system and advancing its capabilities," adding, "Integrated HLB will make new drug development outcomes visible based on sophisticated technology and a global network."