Korean VC firms invest in UK drug developer, first after Brexit
Oct 17, 2016 (Gmt+09:00)
2
Min read
Most Read
LG Chem to sell water filter business to Glenwood PE for $692 million
Kyobo Life poised to buy Japan’s SBI Group-owned savings bank
KT&G eyes overseas M&A after rejecting activist fund's offer
StockX in merger talks with Naver’s online reseller Kream
Mirae Asset to be named Korea Post’s core real estate fund operator
Celleron Therapeutics Ltd., a cancer treatment developer founded by Oxford University professors, is poised to attract $26 million from South Korean and Chinese investors to fund phase II clinical trial of a personalized anti-cancer drug, according to investment banking sources on Oct. 13.
The prospective joint investment will be the first such case for South Korean venture capital firms in Britain, since the U.K. vote to leave the European Union. It also comes after the pound tumbled almost 20% against the Korean won since the Brexit decision.
In exchange for fresh capital, the U.K.-based medicine company will offer minority stakes to those Asian investors, which include five venture capital firms and an unidentified South Korean pharmaceutical company.
Of the venture capital firms from South Korea and China, Korea Investment Partners Co. Ltd., a venture capital unit of Korea Investment Holding Co. Ltd., and NHN Investment Co. Ltd., have recently agreed to commit a total of $7 million to Celleron. The South Korean medicine company has also agreed to invest $2 million in the UK firm. They had taken about a half year to negotiate the deal.
Further, two other South Korean venture capital firms and a Chinese investor are in talks to invest a combined $17 million in Celleron. No further details are available about those investors.
Celleron, set up in 2005, is developing a personalized cancer treatment to tackle a wide range of late-stage cancers. The cancer treatment under development has passed the first human clinical trial.
After phase II trial, the South Korean pharmaceutical firm would secure the sales license in east Asian markets. For the U.S., Europe and other parts of the world, Celleron will sell the sales license to a multinational medicine company. The U.K. firm is expected to use South Korean hospitals for the second human trial.
“British universities have qualified research staff in the biotechnology industry, and early-stage investments are taking place actively out there,” a South Korean venture capital source told the Korea Economic Daily. “After the Brexit, biotechnology companies in the U.K. will see a rise in capital inflows from domestic venture capital firms.”
By Taeho Kim and Donghun Lee
highkick@hankyung.com
The prospective joint investment will be the first such case for South Korean venture capital firms in Britain, since the U.K. vote to leave the European Union. It also comes after the pound tumbled almost 20% against the Korean won since the Brexit decision.
In exchange for fresh capital, the U.K.-based medicine company will offer minority stakes to those Asian investors, which include five venture capital firms and an unidentified South Korean pharmaceutical company.
Of the venture capital firms from South Korea and China, Korea Investment Partners Co. Ltd., a venture capital unit of Korea Investment Holding Co. Ltd., and NHN Investment Co. Ltd., have recently agreed to commit a total of $7 million to Celleron. The South Korean medicine company has also agreed to invest $2 million in the UK firm. They had taken about a half year to negotiate the deal.
Further, two other South Korean venture capital firms and a Chinese investor are in talks to invest a combined $17 million in Celleron. No further details are available about those investors.
Celleron, set up in 2005, is developing a personalized cancer treatment to tackle a wide range of late-stage cancers. The cancer treatment under development has passed the first human clinical trial.
After phase II trial, the South Korean pharmaceutical firm would secure the sales license in east Asian markets. For the U.S., Europe and other parts of the world, Celleron will sell the sales license to a multinational medicine company. The U.K. firm is expected to use South Korean hospitals for the second human trial.
“British universities have qualified research staff in the biotechnology industry, and early-stage investments are taking place actively out there,” a South Korean venture capital source told the Korea Economic Daily. “After the Brexit, biotechnology companies in the U.K. will see a rise in capital inflows from domestic venture capital firms.”
By Taeho Kim and Donghun Lee
highkick@hankyung.com
Yeonhee Kim edited this article
More to Read
-
Real estateMirae Asset to be named Korea Post’s core real estate fund operatorApr 29, 2025 (Gmt+09:00)
-
Asset managementMirae Asset bets on China as Korean investors’ US focus draws concernApr 27, 2025 (Gmt+09:00)
-
Alternative investmentsMeritz backs half of ex-manager’s $210 mn hedge fundApr 23, 2025 (Gmt+09:00)
-
Real estateRitz-Carlton to return to Seoul, tapped by IGIS Asset for landmark projectApr 22, 2025 (Gmt+09:00)
-
Real estateS.Korean gaming giant Netmarble eyes headquarters building saleApr 18, 2025 (Gmt+09:00)
Comment 0
LOG IN