Ildong Pharma to spin off R&D subsidiary in Nov

South Korea’s Ildong Pharmaceutical Co. will spin off its research and development (R&D) unit into the subsidiary Yunovia from Nov. 1. 

The new entity will pursue clinical development and receive and pass on candidate treatments for diabetes, obesity, Parkinson's disease and peptic ulcers developed by its parent company for technology transfers.

Yunovia will be jointly led by Ildong Pharma presidents Seo Jin-seok, a former chief operating officer of the company, and Choi Sung-ku, who used to head the R&D division.

After its launch next month, Yunovia plans to continue its operations based on its parent company’s major R&D assets and new drug candidates.

Yunovia pursues clinical development and technology transfer of candidate treatments for metabolic diseases received from Ildong like GLP-1RA, those for degenerative brain ailments such as Parkinson’s and those for gastrointestinal conditions including peptic ulcers. In addition, it will accelerate its pipeline expansion by searching for new materials and technologies.

“Through this spinoff, Ildong Pharmaceutical can promote business growth through expanded reinvestment and improved financial soundness.” Ildong Pharma CEO Yoon Woong-seop said. “By raising its expertise and autonomy, Yunovia can see early results in new drug development and secure investment partners.”

Write to Ye-Na Kim at yena@hankyung.com