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LG Chem acquires Aveo Pharmaceuticals for $566 million

Published: 18 Oct. 2022, 18:51

LG Chem CEO Shin Hak-cheol [LG CHEM]

LG Chem acquired Nasdaq-listed Aveo Pharmaceuticals for $566 million, the Korean chemical company said Tuesday.

The purchase will be handled by LG Chem Life Science Innovation Center, LG Chem's wholly-owned U.S. subsidiary. The deal will take some three to six months to be completely closed.

Established in 2002 in Boston, Aveo is a pharmaceutical company specializing in cancer treatments. It developed Fotivda, a treatment for kidney cancer, and acquired use approval from the U.S. Food and Drug Administration (FDA) in 2021.

The Boston-based company also has three candidate products, including Ficlatuzumab, a treatment for head and neck cancer, which is currently undergoing Phase 3 clinical trials. The three candidates are expected to gain FDA approvals before 2030, LG Chem said.

"The acquirement is the most important milestone in LG Chem's 40 years of biopharmaceutical business, and will pave the path for our business to go global," said LG Chem CEO Shin Hak-cheol.

Earlier in the year, LG Chem announced its goal to log about 2 trillion won ($1.4 billion) in revenue in the biopharmaceutical business alone by 2027.

LG Chem has 20 drugs that are undergoing either preclinical trials or clinical trials. Of them, nine are cancer treatments.

BY SARAH CHEA [[email protected]]