This undated photo provided by LG Chem shows its CEO Shin Hak-cheol (4th from L), AVEO Pharmaceuticals CEO Michael Bailey (4th from R) and other officials from the two companies.
SEOUL, Jan. 19 (Korea Bizwire) — LG Chem Ltd., a major South Korean chemicals firm, said Thursday it will complete the acquisition of AVEO Pharmaceuticals Inc., a U.S. bio firm focused on renal cell carcinoma, later this week.
It has invested US$571 million in its U.S. affiliate, LG Chem Life Science Innovation Center, to take over the U.S. company and will complete the process Friday, LG Chem said in a press release.
After announcing the deal in October last year, LG Chem received approval from the U.S. antitrust regulator in December and AVEO’s board of directors accepted LG Chem’s offer last week.
With the completion of the transaction, AVEO will become a second-tier subsidiary of the Korean firm.
Founded in 2002 and listed on the Nasdaq in 2010, AVEO Pharmaceuticals won FDA approval for FOTIVDA, which treats adult patients with relapsed or refractory advanced renal cell carcinoma, in 2021.
Its sales reached 130 billion won (US$105 million) last year and are expected to amount to 210 billion won in 2023, according to LG Chem.
LG Chem said it will transfer its anti-cancer drug pipeline to AVEO as part of its long-term strategy to strengthen its U.S. production.
“We will foster AVEO as a new bio hub that leads our growth in the anti-cancer business,” LG Chem CEO Shin Hak-cheol said in a release. “We will strive to become a leading global pharmaceutical firm by maximizing the synergy with AVEO.”
LG Chem said it will invest 2 trillion won in research and development of the bio business by 2027, and launch at least four new medications in overseas market.
(Yonhap)
