AVEO to Become U.S. Foundation for LG Chem Life Sciences’ Oncology Division
LG Chem has completed its acquisition of AVEO Oncology, a U.S. biopharmaceutical company focused on oncology, in an all-cash transaction with an implied equity value of US$571M on a fully diluted basis, the company announced on Jan. 19.
“We are excited to complete LG Chem’s acquisition of AVEO, which will position us to deliver on our mission of becoming one of the world’s leading oncology companies with a robust clinical pipeline of innovative therapies,” said Shin Hak-cheol, CEO of LG Chem.
AVEO plans to accelerate the commercialization of new anti-cancer drugs developed by LG Chem Life Sciences. With strong capabilities in early-stage R&D and production process, LG Chem Life Sciences will be positioned to pursue promising anti-cancer therapies and commercial processes for pre-clinical and early clinical trials, while AVEO, with its broad expertise in clinical development and sales in the U.S. market, will oversee clinical development and commercialization.
“The merger extends LG Chem Life Sciences’ commercial footprint to the U.S., diversifies our pipeline and advances our combined capabilities with AVEO, accelerating our ability to develop, commercialize and acquire world-class cancer therapies,” said Son Jee-woong, president of LG Chem Life Sciences. “We look forward to working closely with AVEO’s experienced and talented team as we welcome them to the LG Chem family.”
“This transaction delivered significant value to our shareholders and AVEO is now positioned to benefit from the support and resources of LG Chem as we advance our mission of improving the lives of patients with cancer,” said Michael Bailey, president and CEO of AVEO. “We look forward to our next chapter of growth as we realize the tremendous potential of our promising pipeline and leverage our combined capabilities to deliver continued progress across our clinical and pre-clinical stage anti-cancer therapies.”
AVEO will continue to be led by president and CEO Michael Bailey, chief commercial officer Mike Ferraresso, chief operating officer Jeb Ledell and senior vice president, general counsel Danielle Holland. AVEO is also welcoming Martin Birkhofer as its chief medical officer and will have Erick Lucera serve as its chief financial officer during a temporary transition period. A new CFO is expected to be appointed by LG Chem.
While AVEO is now a wholly owned subsidiary of LG Chem Life Sciences Innovation Center, Inc., AVEO will continue to operate under the AVEO Oncology name. The combined company will fully maintain operations in Boston and Cambridge, Massachusetts, where both AVEO and LG Chem Life Sciences Innovation Center are based.