EyeGene, a messenger ribonucleic acid (mRNA) vaccine developer, has ushered in BMI Korea as its new largest shareholder.

The company is drawing attention by announcing that it will overhaul its R&D strategy from the ground up as it launches a new management structure early next year.

On Wednesday, EyeGene announced a third-party allotment capital increase for BMI Korea. It issued 5,551,444 new shares at 2,702 won ($2). The company will draw an investment of 15 billion won from BMI Korea. BMI Korea will have a one-year protective subscription obligation for all the newly issued shares.

EyeGene explained that upon completion of the investment, the company's largest shareholder will change from EyeGene CEO Yoo Won-il to BMI Korea. Explaining reasons for selecting BMI Korea as its subject of the capital increase, EyeGene said it considered improving the financial structure to achieve the company's management objectives and quickly raising necessary funds such as operating funds and investors' willingness and ability to pay and timing.

BMI Korea produces and sells more than 20 specialty drugs, biopharmaceuticals, over-the-counter drugs, medical devices, and aesthetic products, including high-purity hyaluronidase. It is a pharmaceutical manufacturing and sales company with annual sales of 100 billion won with contract manufacturing (CMO) facilities in Jeju and Osong.

With the investment, EyeGene plans to review its pipeline R&D strategy from the ground up, implement a major reorganization to streamline its size, make cost-cutting efforts across management and research, and launch a new management structure in early 2024 in consultation with its largest shareholder.

“Once the investment process is completed and the new management system is launched in the new year, EyeGene will actively utilize the investment funds and the costs that can be saved from existing R&D projects and organizational reductions to improve EyeGene's constitution,” a company official said. “We will make every effort to improve the company's revenue structure from relying solely on licensing expectations by first exploring cash-generating businesses and boldly pursuing the introduction of new pipelines with high commercialization potential."

BMI Korea, which will become the largest shareholder, has many years of know-how in CMO operations, product production, and sales. EyeGene has accumulated a lot of research achievements in basic stage research, so if both companies work together, the official noted.

“Our specialized strengths can be used as synergies in EyeGene's operations. Shortly, we will actively promote projects that can improve the profitability of EyeGene, which has only been in the research and development stage. Through this, we will strive to reduce shareholders' pain by using it as a driving force to increase EyeGene’s stock price, which has been greatly devalued."

EyeGene’s stock price surged a daily limit of 30 percent to trade at 3,990 won on Thursday afternoon.