Lotte may buy a stake in Enzychem Lifesciences
Lotte Group may buy a stake in a domestic biopharmaceutical firm.
The group is currently looking for ways to work with Enzychem Lifesciences, a bio firm dedicated to developing new drugs and active pharmaceutical ingredients. Its lead compound is an immune resolution accelerator derived from deer antlers.
Enzychem Lifesciences, founded in 1999, also has an office in Englewood Cliffs, New Jersey.
“Lotte is currently looking into various businesses to expand the business portfolio and bio is one of them,” said a spokesperson for Lotte Corporation, adding that “nothing has been determined.”
Local media outlets on Monday reported Lotte is mulling the purchase of a stake in Kosdaq-listed Enzychem Lifesciences.
Lotte could establish a joint venture with Enzychem Lifesciences, according to the reports, or it could use the company for manufacturing.
The possible start of a bio business comes as Lotte seeks sources of growth, as the group’s businesses have been hit hard by a series of incidents over the past years, including Covid-19 and China’s retaliatory measures against Lotte companies.
In January, Lotte Group Chairman Shin Dong-bin told employees that Lotte “has to find new growth engines through a bold investment.”
Following the news, shares of Enzychem Lifesciences jumped 17.25 percent in intra-trading on Tuesday. It closed 10,30 percent up from Monday to 122,100 won ($110).
BY JIN MIN-JI [firstname.lastname@example.org]