LegoChem Biosciences logo./News1

Orion is investing $415.6 million (approximately 550 billion won) to acquire a 25 percent stake in biotech company LegoChem Biosciences, thus becoming its largest shareholder. LegoChem Bio specializes in drug discovery, particularly in antibody-drug conjugates (ADC). Orion aims to leverage these ADC to break into the market of next-generation anticancer drugs.

On Jan. 15, Orion disclosed that it had bought 1.4 million shares from LegoChem Bio’s previous largest shareholder, CEO Kim Yong-zu, and related parties. Additionally, Orion obtained 7.96 million shares via a third-party placement. This acquisition positions Orion as the majority shareholder, owning over 25 percent of LegoChem Bio’s total shares. The purchasing entity is Pan Orion Corporation, a Hong Kong-based subsidiary of Orion and the holding company for seven entities in China. The transaction is set to be finalized on Mar. 29. Following the closure of this deal, Orion will integrate LegoChem Bio into its corporate family, retaining the biotech firm’s current management and operational framework.

Since its establishment, LegoChem Bio has been at the forefront of developing innovative drugs using its proprietary, next-generation ADC technology. The company has successfully negotiated 13 out-licensing agreements since 2015, amounting to a total contract value of $6.6 billion (8.7 trillion won).

In October 2020, Orion formed a joint venture with Shandong Lukang Pharmaceutical GroupMedicine, leading to the creation of Shandong Lukang Hao Li You in March of the subsequent year. This entity focuses on conducting in vitro diagnostic trials for colorectal cancer in China. Additionally, a $67.7 million (90 billion won) tuberculosis vaccine plant is nearing completion. In Korea, Orion expanded into the bio market in December 2022 by founding Orion Biologics, a joint venture with HysensBio.

Heo In-cheol, Orion’s vice chairman, said, “As society ages, the demand for cancer drugs is rapidly increasing. ADC technology is emerging as a next-generation cancer drug with minimal resistance and side effects. We are committed to investing significantly in developing new global drugs in this field.”