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Prestige Biopharma Invests USD 110 Million in Korean Subsidiary
Date
2021-09-14 10:07
Prestige Biopharma Invests USD 110 Million in Korean Subsidiary
— USD 55 Million Each in Capital Increase and Loan for R&D Center Development
Prestige Biopharma, a Singapore-based biopharmaceutical company, is making a large-scale investment in its Korean subsidiary, Prestige Biopharma Korea. The total amount of support provided this year through capital increases and loans has reached USD 110 million (approximately KRW 123 billion). The funds are expected to be used for the construction and operation of a vaccine production center in Osong, as well as a vaccine research center planned in Busan.
On May 28, Prestige Biopharma’s board of directors approved the acquisition of newly issued shares of Prestige Biopharma Korea worth USD 55 million (approximately KRW 61.5 billion), participating in the subsidiary’s capital increase. The company invested USD 15 million in June and completed an additional USD 30 million payment in August, with the remaining USD 10 million scheduled to be paid within the month.
On September 9, the board also approved a loan of USD 55 million to Prestige Biopharma Korea. The funds are expected to be disbursed in the following month, with a loan term of up to six years.
As of June 30, 2020, Prestige Biopharma, which follows a June fiscal year-end, held cash and cash equivalents totaling USD 390.8 million (approximately KRW 450 billion). The company previously raised approximately KRW 490.9 billion through its initial public offering (IPO) in February. Of this amount, USD 15 million was used on June 11 to acquire newly issued shares of Prestige Biopharma Korea.
Prestige Biopharma became the first Singapore-based company to be listed on Korea’s main stock market (KOSPI) in February. In April, the company established its Korean subsidiary, Prestige Biopharma Korea, to conduct domestic operations. The subsidiary was set up as a wholly owned entity with an initial capital of KRW 500 million fully funded by Prestige Biopharma.
Following the establishment of its Korean subsidiary in April, Prestige Biopharma commenced construction of a vaccine production center. The company aims to complete construction and validation of the production system within the year in preparation for product manufacturing.
In May, the company also signed a memorandum of understanding (MOU) with the Busan Metropolitan Government to establish a vaccine research center. The planned R&D center, named IDC (Innovative Discovery Centre), will focus on the development of antibody therapeutics and vaccines for emerging infectious diseases.
A company official stated, “The IDC, which began construction this year, is targeted for completion by the end of 2022. Over the next five years, we plan to recruit more than 200 highly qualified researchers with master’s and doctoral degrees. We expect IDC to become a key global infrastructure leading the group’s R&D efforts.”
Reference: The Bell (https://www.thebell.co.kr/front/newsview.asp?click=F&key=202109141623166320102979)
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