SCM Lifescience said Thursday that it has signed a memorandum of understanding with Toolgen to develop a gene-inserted stem cell therapy.

Based on the MoU, SCM Lifescience plans to jointly develop the therapy with improved immune function by using SCM’s adult stem cell and Toolgen’s genetic modification technology.

The two companies have already conducted several R&D meetings before the agreement and aim to develop a new business model through cooperation.

“We are pleased to conduct joint research on the development of gene transplanted stem cell therapies with Toolgen, a world-renowned company in the field of genetic engineering,” SCM Lifescience CEO Rhee Byung-gun said. “We hope that the two companies will cooperate in the field of regenerative medicine, where Korea can show a competitive edge in the global market, and develop a therapeutic agent that can treat patients with intractable diseases.”

Toolgen also announced its plans to strengthen its corporate value through the partnership.

“Based on the successful development of gene transplanted stem cell therapies with SCM Lifescience, we will make meaningful achievements in the field of next-generation gene therapy drugs,” Toolgen CEO Kim Jong-moon said. “The company expects that the agreement will further strengthen Toolgen’s R&D and business activities in the field of gene cellular therapy business.”