GC Cell sells its Japanese bio stock to associated companies

GC Cell has sold its Japanese company specializing in cell therapy, Lymphotec, stock to holdings·GC Genome

Focusing business operations in Japan around its holdings company, aiming to expand market share leveraging Lymphotec

GC Group's subsidiary, GC Cell, has transferred some shares of its Japanese cell therapy company, which it acquired seven years ago, to a holding company that specializes in gene analysis within the group.

 

The company decided that entrusting a business to a local subsidiary with business experience in the Japanese market would be more efficient.

 

GC Group aims to enter the Japanese market for cell therapy on a full scale.다.

 

According to the Financial Supervisory Service on March 18, GC Cell sold 50,685 stake of GC Lymphotec for KRW 2.6 billion in Q4 of last year.

 

Lymphotec is a company founded by Dr.

 

Sekine, who worked as a researcher at the National Cancer Center Research Institute of Japan, in 1999.

 

Dr.

 

Sekine has been recognized as the leading researcher in the field of immune cell therapy, developing proprietary immune cell culture methods and publishing numerous research articles.

 

The company primarily manufactures and sells cell therapies and culture reagents in Japan.

 

As of last year, the company generated KRW 5.1 billion in sales and achieved KRW 600 million in operating profit.

 

Previously, Green Cross Cell Corp acquired Lymphotec in 2018.

 

In addition to its existing 14.5% stock of Lymphotec, Green Cross Cell Corp acquired an additional 68.8% of the stock, thereby becoming the largest shareholder.

 

After that, Green Cross LabCell and Green Cross Cell Corp merged to form a unified entity, GC Cell, and Lymphotec was incorporated into GC Cell's subsidiary.

 

With the recent share sale, GC Cell's stake in Lymphotec has been reduced from 83.3% to 24.4%, and the company has reclassified Lymphotec from a subsidiary to an affiliate.

 

Under accounting principles, a firm must hold more than 50% of the shares to be considered a subsidiary.

 

The transaction was made to Green Cross Holdings and a subsidiary specializing in gene analysis, s.

 

The amount of stock sold by each company has not been disclosed GC Cell reasoned that divesting shares to related parties such as Green Cross Holdings and GC Genome was a strategy of choice and focus.

 

The company believes that entrusting operations to a local holding company with business experience in the Japanese market will lead to more efficient management.

 

GC has been targeting the Japanese market with its 'Hunterase,' a Hunter syndrome treatment designed as intraventricular use.

 

In early 2021, the company became the first in the world to receive marketing approval from Japanese regulatory authorities for Hunterase ICV.

 

This form replaces the conventional intravenous administration with direct intraventricular injection.

 

In addition, GC is collaborating with Tottori University in Japan to develop an oral chaperone therapy for GM1-gangliosidosis.

 

Centering the company's capacity around its holding company, GC Group plans to enter the Japanese cell therapy market on a full scale.

 

Leveraging Green Cross Holdings' local network and market insights, the group will likely take a more strategic approach.

 

Moreover, collaborations among affiliates within the group are expected to strengthen connections across R&D, clinical development, and manufacturing.

 

This is expected to accelerate GC Genome's ongoing IPO efforts further.

 

In November of last year, the company submitted a preliminary review application for a KOSDAQ listing to the Korea Exchange, planning to list 22.5 million shares in addition to 2.94 million shares to be offered to the public.

 

Moreover, GC Genome secured A ratings from the designated professional evaluation agencies in October, passing the first hurdle for a technology-special listing.

 

Using Lymphotec's established network of Japanese medical institutions and partners, GC Genome plans to introduce the AI-based multi-cancer early detection test, 'ai-CANCERCH,' to the local market.

 

The company will also strengthen local clinical research and technology development through partnerships with major Japanese hospitals and research centers.

 

GC Group said, "Given that Green Cross Holdings has experience conducting business in the Japanese market, holding the Lymphotec stock and managing it will enable the company to operate a local business effectively," adding, "Lymphotec will provide a connecting role for the company's business in Japan."