INCHEON, SOUTH KOREA, October 25, 2018 – CCM Duopharma Biotech Berhad (“CCM Duopharma” or the “Company”) and SCM Lifescience Co., Ltd. (“SCM Lifescience”) of Korea today announced that they have entered into a share subscription agreement (“SSA”) whereby CCM Duopharma acquired common shares and redeemable preference convertible shares in SCM Lifescience upon and subject to the terms and conditions set out in the SSA.
CCM Duopharma and SCM Lifescience have also entered into an exclusive marketing and commercialisation agreement (“EMCA”) whereby the Company acquired rights to market and commercialise products developed by SCM Lifescience in selected territories in South East Asia upon and subject to the terms and conditions of the EMCA.
According to the SSA, CCM Duopharma has acquired approximately 5.8 per cent equity stake in SCM Lifescience for a total purchase consideration of RM20.24 million (KRW5.5 billion). SCM Lifescience specializes in stem cell therapeutics with proprietary platform technology in the field of high-purity isolation and cultivation of mesenchymal stem cells.
“CCM Duopharma has been looking very closely at potential strategic investments in regenerative medicines as well as stem cells and today’s agreement has laid the groundwork to penetrate the South East Asia market and could provide a driving force for global expansion of both entities” said Encik Leonard Ariff Abdul Shatar, Group Managing Director of CCM Duopharma.
“This is our first foray into regenerative medicine, specifically in allogeneic stem cells, in line with our strategy to enter niche areas which will enable the company to expand its product portfolio to move into high value therapeutics and gain early access to the technology and the rights to market products by SCM Lifescience in Malaysia, Singapore, Brunei and Philip- pines with the first right of refusal for all other ASEAN countries excluding Indonesia,” he added.
This strategic investment will open an opportunity for CCM Duopharma to have access to a range of pipeline products which will be ready to commercialise in the next few years. Furthermore, the acquisition includes technical knowledge transfer to the Company on cell-based therapy products.
SCM Lifescience currently focuses on autoimmune diseases such as chronic and acute graft-versus-host disease (GVHD), severe acute pancreatitis, severe atopic dermatitis, and severe liver cirrhosis. Dr. Byung Geon Rhee, the Chief Executive Officer of SCM Lifescience said, “This agreement recognises the value of SCM Lifescience’s platform technology for stem cell therapeutics. The equity investment and collaboration between SCM Lifescience and CCM Duopharma is expected to be of great help in targeting the global market.”