IT service firm Tongyang to acquires stake in German biotech firm

Lim Chang-won Reporter Posted : 2018-05-28 14:44 Updated : 2018-05-28 14:44
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[Tongyang Networks]


SEOUL -- Tongyang Networks, a Seoul-based IT service company, announced a deal Monday to buy a 6.72 percent stake in Medigene AG, becoming the largest single shareholder of the German biotech company which has sought a partner to conduct clinical and commercial activities in Asia.

In a regulatory filing on Monday, Tongyang said it would buy 1.65 million shares of Medigene for 30.3 billion won ($28.1 million). Tongyang offers system integration services and integrated purchase proxy services. The acquisition is aimed at diversifying its business, Tongyang said, adding it could acquire more shares in the German company.

Medigene develops highly innovative, complementary treatment platforms to target various types and stages of cancer with candidates in clinical and pre-clinical development. Medigene concentrates on the development of personalized T cell-based immunotherapies.

T cells are believed to play a major role in immunosurveillance and tumor eradication. Tumor immunotherapy has demonstrable efficacy in patients with cancer and the most promising results have been with T-cell–based therapies which are in clinical trials. Tongyang said it was selected by Medigene to conduct clinical trials and commercial activities in Asia.