Alteogen said on the 6th that it decided to absorb its subsidiary Alteogen Biologics through a small-scale merger. The two companies plan to sign the merger agreement on the 7th. ☆ See pages 1 and 16 of this newspaper's June 12 edition
Alteogen Biologics is a subsidiary in which Alteogen holds a 62.9% stake. It completed global Phase 3 trials of "ALT-L9," a biosimilar of the eye disease treatment Eylea, and won European approval. It is also developing "ALTS-OP01," a candidate treatment for macular degeneration.
Through the merger, Alteogen plans to consolidate pipelines and business capabilities scattered across the subsidiary and strengthen a business structure spanning research and development through commercialization. The company also intends to internalize Alteogen Biologics' global clinical and regulatory experience along with its sales and marketing organization, securing a foundation for commercializing its own products.
The merger ratio is 1 to 0.1679581 for Alteogen and Alteogen Biologics. Upon completion, a total of 600,477 new Alteogen shares will be issued to Alteogen Biologics shareholders. No new shares will be allocated for the 62.9% stake in Alteogen Biologics held by Alteogen. The merger date is Dec. 29.
Alteogen set up a special committee composed of independent directors and underwent legal and financial reviews of the merger by outside experts. The special committee recommended proceeding with the merger after reviewing its necessity and the valuation methods used.
An Alteogen official stressed, "This merger is a turning point for Alteogen to expand its business scope into the development and commercialization of its own products," adding, "We will strengthen a business structure that connects research and development to production and sales."
