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LG Chem CEO Shin Hak-cheol (front row, fourth from left) and AVEO President Michael Bailey (front row, fifth from left) pose with AEO employees at AVEO’s office in Boston.Photo courtesy of LG Chem
SEOUL, Jan. 20 (UPI) — South Korean chemical giant LG Chem announced the acquisition of US pharmaceutical company AVEO Oncology.
The Seoul-based company paid $571 million in an all-cash deal announced Thursday.
AVEO shareholders were able to approve the acquisition after receiving U.S. government approval last month, LG Chem said.
AVEO is known for FOTIVDA, a drug for the treatment of relapsed or refractory advanced renal cell carcinoma.it received us Food and Drug Administration Approved in early 2021.
The new drug generated $110 million in revenue last year. Its sales are expected to hit $170 million this year and grow to $360 million by 2027, according to industry consensus.
AVEO is working to develop other cancer treatments.
LG Chem said that after the transition period, new drug development technologies in areas such as cell therapy and immunosuppressants will be transferred to AVEO.
“Our plan is to invest more than $1.6 billion in drug research by 2027 so that we can provide at least four different drugs for cancer and metabolic diseases,” an LG Chem official told UPI News Korea.
The Boston-based company will continue to operate as AVEO Oncology while retaining many of its senior executives, including CEO Michael Bailey.
LG Chem CEO Shin Hak-cheol said the company will strive to develop new products in partnership with AVEO, which has extensive expertise in clinical development and sales in the U.S. market.
“We are delighted to complete LG Chem’s acquisition of AVEO, which will enable us to fulfill our mission to become one of the world’s leading oncology companies with a strong clinical pipeline of innovative therapies,” he said in a statement.
Bailey said the all-cash deal was a big plus for its shareholders.
“We look forward to the next chapter of growth as we realize the enormous potential of our promising pipeline and leverage our combined capabilities to achieve success across our clinical and preclinical stage anti-cancer therapies,” he said in a statement. Progress continues.”
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