Huons Group said on the 25th that "the merger between Huons and Huons Lab has nothing to do with succession." Huons Lab has technology that converts intravenous injection drugs into subcutaneous injection formulations.
Huons Lab is a subsidiary of the group's holding company, Huons Global, but on the 18th decided to merge with Huons. Shareholders raised concerns that the future value of Huons Lab, which Huons Global had enjoyed, could shift to Huons Lab. Some also said the move could be aimed at weighing down the holding company's stock for succession.
Huons Group said it decided on the merger to strengthen bio research and development. Huons is increasing research and development spending in line with government policy, and Huons Lab is in a capital impairment state, so the two companies needed to merge to secure funds. A Huons Group official said, "Huons Global is a pure holding company with limited sources of income and cash on hand."
The company operated a special committee that included external experts during the decision-making process for the merger. The merger ratio was also determined after multiple external evaluations. A Huons Group official said, "There is absolutely no plan to donate the controlling shareholder's equity at present," and added, "Linking the merger to succession does not align with the facts." The official also said, "We recognize shareholders' concerns and are reviewing measures to protect Huons Global shareholders."