SK Biopharmaceuticals will inject about 51.2 billion won into its U.S. subsidiary SK Life Science Labs, Inc.
SK Biopharmaceuticals said on the 6th that its board approved taking part in a paid-in capital increase at SK Life Science Labs and decided to acquire 218.75 million shares through a cash contribution.
The investment amounts to $35 million (about 51.2505 billion won), or about 8.9% of SK Biopharmaceuticals' equity. The scheduled acquisition date is the 11th.
SK Life Science Labs is a research and development company established when SK Biopharmaceuticals acquired "Proteovant Therapeutics," a U.S. Targeted Protein Degradation (TPD) specialist, in Aug. 2023.
The company said it participated in the paid-in capital increase to secure operating funds, including for clinical preparation of SK Life Science Labs' core pipeline.
It is seen as laying the groundwork for clinical entry of TPD (Targeted Protein Degradation)-based drug candidates under development at SK Life Science Labs. TPD uses the body's protein degradation system to break down and remove disease-causing target proteins, and is cited as a key to overcoming the limits and resistance of existing therapies that only reduce protein production or function.
With this investment, SK Biopharmaceuticals' holdings in the subsidiary will be 285,416,660 shares, for a 100% stake. Meanwhile, as of 2024, SK Life Science Labs' total assets are about 73.6 billion won, and its net loss is about 37.6 billion won.