- Accelerating gene therapy development with strategic investment

REYON Pharmaceutical (representative directors Sunok Jeong and Yonghwan Yoo) announced on the 25th that it has signed a contract to invest a total of KRW 10 billion in equity investment in Neuracle Genetics Co., Ltd. (CEO Songwon Kim), a bio-venture company that develops AAV-based gene therapy.

With the conclusion of this contract, REYON Pharmaceutical will become the second largest shareholder of Neuracle Genetics.

Neuracle Genetics is a bio-venture company that is developing a new gene therapy targeting a new drug target discovered by Neuracle Science through a worldwide exclusive license agreement with its subsidiary, Neuracle Science. The new drug target is a platform target that can be used for various indications, and Neuracle Genetics is expected to develop effective gene therapy for degenerative brain diseases and chronic neuropathic pain.

An official at Neuracle Genetics said, "Using the funds secured through this investment contract, the company plans to develop original technologies related to AAV gene therapy products and develop optimized candidates for gene therapy products for each disease." He went on to say, "Based on this, we expect to enter the clinical trial stage for major indications around 2021."

Representative director of REYON Pharmaceutical, Yonghwan Yoo, said, "This contract will further diversify the gene therapy pipeline at the Chungju Plant currently under construction, and based on close cooperation with Neuracle Genetics and the manufacturing capabilities and infrastructure that REYON Pharmaceutical has accumulated for 60 years, we will be able to leap to the center of the global gene therapy market in the future.” He added, "We look forward to the development of a fundamental treatment for patients suffering from Alzheimer's disease and ALS, which have no fundamental treatment to date.”

Songweon Kim, CEO of Neuracle Genetics, said, "This contract isn't just a simple investment agreement between Neuracle Genetics and REYON Pharmaceutical, but a joint business cooperation plan that includes the development of gene therapy products. It is of greater significance in that the two companies are engaging in win-win cooperation to develop an innovative gene therapy platform. Through cooperation with REYON Pharmaceutical, Neuracle Genetics will conduct exploratory initial research on new gene therapy drugs using excellent domestic and international research and development networks, and we intend to enter the global market as soon as possible.”

Meanwhile, REYON Pharmaceutical is actively conducting open innovation with bio-venture companies such as ▲GNP Bioscience ▲Neuracle Science and ▲Neuracle Genetics this year.

[Glossary]
1. AAV: Adeno-associated virus This is one of the viruses used as a carrier to deliver genes to cells during gene therapy. While it can effectively infect various cells, it does not cause serious diseases in humans, so it is being actively used in the development of gene therapy.
2. Gene therapy: Gene therapy is a technique that causes genetic mutations in the human body for the purpose of preventing or treating diseases, or delivering genetic material or cells into the human body.
3. Vector: A vehicle used to deliver genetic material to target cells.