CrystalGenomics Scores KRW 3 Billion in Strategic Equity Investment from KSLSF, a Life Science Fund Backed by the City of Seoul and the Ministry of Knowledge Economy
PANGYO, South Korea, Jan. 13, 2012 /PRNewswire/ -- CrystalGenomics, Inc., a clinical stage biopharmaceutical company headquartered in Korea, has just announced that it has successfully raised KRW 3 Billion (USD 2.6 Million) in a private placement to the Korea Seoul Life Science Fund (KSLSF).
This is the third time within the past month that CrystalGenomics has raised capital following a KRW 10 Billion bond issuance to KDB Capital, a major financial institution in Korea on December 6th and another KRW 10 Billion in bonds issued to Tube Investment, a local investment firm on December 22nd. This brings the total up to KRW 23 Billion (USD 20 Million) in raised capital.
However, unlike the two previous capital financings, this third funding has an added symbolic value because it would be a creditable validation coming from the two GPs of the KSLSF comprising of Hanwha Venture Capital Corp., a local VC company with proven track record and, Oxford Bioscience Partners (OBP), a leading Boston based VC firm that has achieved considerable success and above average returns in the life sciences sector over the past 20 years through investments in more than 140 companies worldwide. Hanwha VC's expertise in local investments and OBP's expertise and global network within the life sciences industry is expected to generate synergy in discovery and support of promising local biotech firms to grow globally.
CrystalGenomics plans to utilize the funds to support its R&D including three clinical stage therapeutic programs.
Jonathan Fleming, the Managing General Partner of OBP said, "We were very impressed with the quality of the science and technology and professional management in the programs of the company. We are especially hopeful that the two lead programs at CrystalGenomics have a good potential to bring breakthrough treatments for pain and infectious disease to patients around the world and for CrystalGenomics to grow into a big successful company as a result."
One of the Partners at Hanwha VC, Sei-hun An said, "Our investment decision had been made based on our evaluation criteria for private companies where rigorous data analysis is performed. We thought that despite its drug target risk, the new NSAID for osteoarthritis has potential to meet significant unmet medical needs. We hope that CrystalGenomics can leverage its close relationship with us to succeed in developing a globally recognized novel drug."
President & CEO of CrystalGenomics, Dr. JM Cho said, "Given current uncertainties surrounding the global economy, it is difficult to raise cash, especially in a form of equity investment. We are quite ho to be the first public company to receive funding from the KSLSF and look forward to leverage our relationship with the GPs of the fund to grow our company on a global level." He added that the series of recent funding confirmed "the recognition by the financial and investment communities of the leadership position of CrystalGenomics to lead the Korean biotech sector, and the potential of its therapeutic programs including the novel NSAID in phase 2b development."
Director, Business Development
SOURCE CrystalGenomics, Inc.