Prestige Biopharma to Acquire More Shares of Prestige Biologics to Consolidate Group Competitiveness

On August 29, 2022 Prestige Biopharma Limited reported that the company will become the largest shareholder of Prestige Biologics by acquiring new shares to secure a total of 24.88% of the CDMO company (Press release, Prestige BioPharma, AUG 29, 2022, View Source [SID1234618797]).

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On August 26, the board of directors of Prestige Biopharma approved subscription in Prestige Biologics’ capital increase through third party allotment of 13,787,830 new shares amounting to approximately KRW 59.8 billion. As result, the Company will have management control over Prestige Biologics which will be accounted for as a subsidiary of Prestige Biopharma.

The new structure allows the two companies to maximize synergy and the group to establish a full value chain. Prestige Biopharma can secure a global-scale production facility with 154,000 litres of capability and core bioprocessing technologies on top of its R&D expertise. Prestige Biologics can leverage Prestige Biopharma’s marketing capabilities to obtain more consignment contracts and raise its position as global CDMO. Hence, the group can improve its revenue and continue its robust investment in R&D of new biologics, contributing to long-term financial stability and prosperity.

In addition, the new structure enables integrated business management by operating integrated organization and digital management system. Thus, it is expected to facilitate strategic and efficient management, streamline decision-making process, and strengthen cooperation.

Meanwhile, Prestige Biologics announced the appointment of Duk-Hoon Hyun as new CEO on August 26 and held an inauguration ceremony on August 29. Duk-Hoon Hyun has led Prestige Biologics’ digital transformation project since last year and has successfully introduced the SAP system into the entire organization. Previously, he was a senior executive of SAP, a global ERP company.

Duk-Hoon Hyun, new CEO of Prestige Biologics mentioned: "I feel heavy responsibility to expedite the innovation in production process and produce results as a global CDMO. I will do my utmost to strengthen ICT technology capabilities, which are essential for data management and factory automation, and create new synergy under the reorganized group structure."

Lisa Park, CEO of Prestige Biopharma, mentioned: "The new integral organizational structure of the group will be the foundation of becoming a global comprehensive biopharmaceutical by enhancing the group’s profitability and stability for growth. Welcoming the new CEO of Prestige Biologics, we look forward to building a future together in discovering, developing, and producing biomedicines."