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Lumosa BOD approved TPG Biologics acquisition

(June 8, 2018. Taipei) Lumosa Therapeutics Co., Ltd. (6535. TWO) (“Lumosa”, a TpEx listed company) and TPG Biologics, Inc.(6521. TWO) (“TPG”, listed on the Emerging Stock Market of TPEx) held respective board meeting and approved a merger proposal between Lumosa and TPG.  The merger is expected to integrate R&D resources of the two companies, expand the product portfolio, accelerate new drug development, and enhance overall operation performance. The name of the post-merger company will remain “Lumosa Therapeutics Co., Ltd.”.

It was agreed that one common share of TPG will be exchanged for 0.775 common share of Lumosa on a one-time issuance basis; resulting in NTD1.16 billion (approximately USD 38 Million equivalent) paid-in capital for the post-merger company. Lumosa and TPG will each hold its shareholder meeting on July 27, 2018 to gain shareholders’ approval of the proposed merger. The merger is subject to government’s regulatory approval subsequently with the targeted date of the merger tentatively set for October 31, 2018.

Lumosa is a new drug development company operating under a “reSEARCH and DEVELOPMENT” model. The company is dedicated in searching and developing novel drug candidates with strong scientific rationale and high feasibility of technical success. Lumosa has obtained market approval from TFDA for its long-acting analgesic injection, Naldebain®, in March of 2017, and has successfully launched it in  Taiwan through a commercial partner.  The product has also been licensed for commercialization in China (including Macau and Hong Kong) and Southeast Asia markets. As a part of product life cycle management, Lumosa further licensed the right of this product to Skyline Vet Pharma for pain management in companion animals in the US, Canada, Australia and New Zealand. Meanwhile, Lumosa’s LT3001, for the treatment of acute ischemic stroke has entered phase I clinical trial in the US. Lumosa’s achievement in both projects demonstrated company’s expertise and execution in advancing new drug development programs effectively.

TPG is a drug development company specialized in biologics. TPG holds essential technologies in protein drug design, cell line and process development. Technical services to biosimilar developers globally, and novel protein drug development have been TPG’s business focuses. 

TPG has established a novel dual-function fusion protein drug platform targeting oncology indications, and a drug derived from this platform, ECC01, has shown impressive inhibitory activities against the growth of multiple cancer cell lines and in three animal models without severe toxic effects reported in acute toxicity studies. An US patent application of this platform was filed in January of 2018.  In March of 2017, TPG signed a collaborative research agreement with NanoCarrier Co., Ltd. of Japan to develop novel biologics.  The partnership leverages TPG’s expertise in protein drug design and cell line development and NanoCarrier’s micellar nanoparticle technology. In May of 2017, NanoCarrier made further capital investment in TPG to show its recognition of TPG’s expertise, as well as its commitment toward the endeavor.

Biologics has emerging as the mainstream of new drugs in global drug market.  Globally, eleven of the top fifteen best-selling drugs in 2017 are biologics. The acquisition of TPG will significantly expand R&D core competency in novel biologics development and expedite Lumosa’s entrance to the biologics field. The intended merger will draw synergy from both companies and enhance the product pipeline and development pipeline, and in turn, greatly strengthen competitiveness of the combined company.