Prestige Biologics raises KRW 90 billion through 3rd party allocation to parent company

Prestige Biologics, a specialized contract development and manufacturing organization (CDMO) for biopharmaceuticals, announced on the 13th that it will conduct a third-party allocation paid-in capital increase targeting its parent company, Prestige Biopharma.

Through this capital increase, Prestige Biopharma’s stake will increase from 24.7% to 40.2%, and Prestige Biologics will raise approximately KRW 90 billion through this.

This funding was decided to maximize synergy between Prestige Biopharma’s group companies. Previously, Prestige Biopharma provided funds to its affiliates in the form of loans, but this was converted into equity, aiming to reduce subsidiary debt and increase consolidated sales. Prestige Biopharma expects that this decision will secure financial soundness and expand business contracts.

Prestige Biologics plans to use the funds raised this time to prepare for full-scale entry into the global market. As it is in charge of the production of Prestige Biopharma’s Herceptin biosimilar ‘Tuznue’, which is about to receive final approval in Europe, the plan is to produce the initial quantity and begin sales in 30 European countries immediately after receiving approval.

We are also working on expanding global CDMO volumes. This is because, with the passage of the Biosecurity Act in the U.S. House of Representatives on the 10th, it has become necessary to secure production facilities that meet the standards of the U.S. Food and Drug Administration (FDA). Accordingly, Prestige Biologics plans to make full preparations for facility investment in preparation for the FDA inspection to be conducted next year.

Hyun Deok-hoon, CEO of Prestige Biologics, said, “The business environment is favorable, with contract inquiries increasing by more than 50% compared to before due to the recent approval of our parent company’s European products and passage of the U.S. Biosecurity Act,” adding, “We will prepare for full-scale plant operation and make every effort to absorb orders in the changing CDMO market.”