South Korean pharmaceutical firm Huons plans to acquire a 31.5% stake in PanGen Biotech for 14.3 billion won ($10.9 million), marking its entry into the contract drug manufacturing business.
The transaction includes purchasing existing shares from CG Invites, PanGen’s largest shareholder, and subscribing to newly issued shares. The deal will give Huons about 4 million shares in PanGen, which operates GMP-certified biologics manufacturing facilities.
The acquisition follows a June agreement where PanGen began producing clinical samples of human-derived hyaluronidase for Huons Lab, a unit of Huons Global. The enzyme, which received regulatory approval for clinical trials in August, is used to improve drug absorption.
Huons plans to secure management control through an extraordinary shareholder meeting after completing the share purchase. The company sees the deal strengthening its biologics development capabilities, particularly through PanGen’s proprietary cell line technology.
The move reflects a broader industry trend of pharmaceutical companies expanding into contract development and manufacturing to diversify revenue streams amid rising demand for biologics production capacity.
