Lee Wang-jun, chairman of Myongji Hospital’s board of directors and chairman of the Myongji Medical Foundation, has become the largest shareholder of MG, a biomedical company based in Seoul.
|Lee Wang-jun, chairman of the Myongji Medical Foundation|
MGmed, which develops molecular diagnostic techniques for various genetic diseases, said in a regulatory filing on Monday that the company transferred all of the 1,559,550 shares, owned by the previous largest shareholder Macrogen, to Lee for about 22.61 billion won ($20.14 million). Each share was sold for 14,500 won.
Lee now has a 25.8 percent stake in MGmed to become its largest shareholder. The company also appointed Lee as an internal director at an extraordinary shareholders’ meeting on the same day.
MGmed, a subsidiary of Macrogen, is a bio-business that develops molecular diagnostic techniques and technologies using DNA chips to detect various genetic diseases. Its core business includes screening genetic abnormalities in pregnant women and newborns. A single DNA test can lead to the diagnoses of multiple diseases, according to the company. MGmed was listed on the tech-heavy Kosdaq in 2015 and recorded more than 5 billion won in revenue last year.
The company plans to conduct a clinical trial on a DNA chip that diagnoses a newborn’s disease in China in the first half of next year. The related market in China is estimated to be around 2 trillion won. The biomedical firm also aims to expand its business in other markets, including the U.S.
MGmed built a technology partnership with Boryung Biopharma to enter the Japanese market.
The company also invests in developing other medical screening products such as a diagnosis kit for prostate cancer.
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