Daewoong Pharmaceutical will sell about 427,000 of its shares to its parent company, Daewoong Co., to secure a research and development fund and invest it in future growth, the company said Wednesday.

It explained that the disposal of treasury stocks would give the company additional liquidity of 50 billion won ($37.85 million) in cash without interest burdens. In addition, Daewoong will use the fund for its various new drug development projects.

Among them are pivotal-stage clinical trials for Fexuclue, a gastroesophageal reflux disease (GERD), a pivotal clinical trial for Envlo, a diabetes treatment of SLGT2 inhibitor family, phase 2 clinical trial for Bersiporocin, treatment for idiopathic pulmonary fibrosis, and phase 1 clinical trial for immunotherapy DWP213388.

Fexuclue, designated by the government as the 34th homegrown new drug, has generated monthly sales of 4 billion won to grow to a hit product with yearly revenue of 50 billion won and aims to rise further to a 100 billion-won item. In addition, Envro, the 36th independently developed new drug, will hit the market soon.

Bersiporocin, developed as the first-in-class (FIC) drug, received fast-track designation from the U.S. Food and Drug Administration last year.

“Our recent decision to acquire Daewoong Pharm’s shares is the expression of confidence in the drug-making unit’s future value by developing new drugs for two consecutive years,” Daewoong Co. CEO Yoon Jae-chun said. “We will continue to strive to raise the corporate value and protect shareholders by proving future growth potential.”