South Korean bio-pharma company Mediforum Co. has acquired two local pharmaceutical firms C-TRI and i-World, a move that is expected to help it expedite its initial public offering (IPO) process on the country’s secondary Kosdaq market.
According to multiple sources from the investment banking industry on Wednesday, Mediforum – a bio company and developer of new drugs that is currently proceeding with phase 2b clinical trial of anti-dementia treatment – has decided to purchase C-TRI and i-World Pharm Corp.
Following the acquisition, Mediforum will control not only research & development (R&D) capability but also drug manufacturing facilities and distribution network.
The new companies under its control also are expected to help Mediforum expedite the process of going public on the country’s secondary tech and bio-centered Kosdaq market next year. Mediforum has been seeking to buy new pharmaceutical companies since the first half of last year that could help it move to its third phase clinical trial of its dementia treatment candidate, enjoy special listing on the Kosdaq market, and speed up new drug application. Shinhan Investment Corp. and eBEST Investment & Securities Co. invested in Mediforum as strategic investors to provide the drug developer ammunition to buy other drug companies.
C-TRI is a Kosdaq-listed pharmaceutical company founded in 1998. It produces dementia treatment rivastigmine and develops other medical products for senile disorders. Mediforum is also developing new drugs related to senile disorders such as dementia and Parkinson’s disease.
C-TRI raised 200 million won ($168,377) in operating income on sales of 17 billion won in the first six months of this year.
i-World Pharm, which owns technology to extract natural substances, is a manufacturer of the clinical trial drug for dementia treatment being developed by Mediforum. The company raised 1.5 billion won in operating income on sales of 22 billion won last year. Following the deal, Mediforum can have access to i-World Pharm’s medicine manufacturing facilities and workforce necessary during new drug application process.