Orion is taking its first step into the next-generation anti-cancer drug market by acquiring LegoChem Bio for about 55 billion won.
Orion Holdings acquired a 25 percent stake in LegoChem Bio and became the largest shareholder on Jan. 15, according to industry sources on Jan. 16. Orion acquired a total of 9,363,283 shares for 54.85 billion won (US$40.75 million) through a third-party allotment capital increase and stock allotment.
Upon the completion of the acquisition, Orion will incorporate LegoChem Bio as an affiliate, with its existing management and operating systems remaining unchanged. LegoChem Bio is a pharmaceutical company with differentiated R&D capabilities in antibody–drug conjugate (ADC) technology and synthetic drugs, which are next-generation anticancer drugs. ADCs are antibody-drug conjugates, a next-generation anticancer drug.
The acquisition is Orion’s first major M&A deal in the biotech business. This is the first acquisition for Orion, which entered the pharmaceutical and biotech markets in 2020 by signing a joint venture agreement with Chinese state-run pharmaceutical company Shandong Lukang Pharmaceutical. Orion is developing its local business by introducing colorectal cancer technology through joint venture Shandong Lukang Hao Li You in China. In 2022, it set up Orion Biologics, a joint venture with Hisense Bio, to develop treatments for intractable dental diseases.
Orion began to look for a new investment target around 2022. The company resumed its search for the new investment target after it failed in a bid for Homeplus in 2015. In 2022, Orion sold its construction affiliates Highland D&C, Leon Asset Development, and Mega Mark, which had been virtually shut down, to put an end to sluggish businesses. It received 110 billion won in dividends from its Vietnamese subsidiary to secure funds in 2023.