LG Chem to acquire AVEO Oncology with USD $566 million investment

South Korean chemical company LG Chem is set to acquire AVEO Oncology, an oncology-focused biopharmaceutical company based in the USA, as part of an investment to increase its footprint in North America and expand its development and commercialisation offerings.

AVEO, a commercial-stage oncology biopharmaceutical company, will join LG Chem’s Life Sciences division to create a global oncology organisation. The acquisition hopes to bring a robust portfolio of innovative products with support for all stages of therapeutic development, from discovery to clinical, biologics manufacturing and US commercialisation at scale. LG Chem Life Sciences is expected to increase its North American footprint in the US, diversifying its pipeline with the range of oncology therapies provided by AVEO, accelerating LG Chem’s efforts to offer the development and commercialisation of cancer therapies.  

AVEO’s leading product FOTIVDA, a US FDA approved treatment for adult patients with relapsed or refractory advanced renal cell carcinoma, will establish LG Chem’s commercial presence as well as granting AVEO access to greater resources for therapeutic development and commercialisation. The transaction is hoped to expand the company’s pipelines in oncology in bringing cancer therapies to those who need them most. LG Chem is currently actively advancing several clinical and preclinical stage anti-cancer therapies, and will be able to become a fully integrated pharmaceutical company with the acquisition. 

Commenting on the acquisition, CEO of LG Chem Shin Hak-Cheol states: “With its track record of clinical success, deep pipeline of innovative therapies, and continued growth trajectory following the successful commercialisation of FOTIVDA, AVEO is the perfect partner for LG Chem Life Sciences... This transaction represents the next step in our portfolio transformation towards higher growth markets and provides a strong commercial foundation in oncology as we continue to develop our anti-cancer offerings.” 

President and CEO of AVEO Michael Bailey added: “By joining forces with LG Chem, AVEO expects to have significant financial and development resources to help AVAEO fully realise the tremendous potential of our promising pipeline. LG Chem shares AVEO’s deep commitment to patients and vision of developing innovative therapies designed to provide substantial impact in the lives of cancer patients with clear, unmet medical needs. This transaction is a testament to the extraordinary efforts of our employees, who will play an integral role in the success of the combined company. We look forward to entering our next chapter of growth with the support of LG Chem.” 

Source: LG Chem to Acquire AVEO Oncology for $15.00 Per Share in (globenewswire.com)