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Photo: HUGEL |
[Alpha Biz= Kim Jisun] Hugel has made a significant profit of up to 25 billion won by selling all of its shares in Olix.
According to industry sources, Hugel sold all of its 355,592 shares in Olix last month, after Olix announced a technology transfer agreement with global pharmaceutical company Eli Lilly on March 7th. The deal, worth up to $630 million (9.116 trillion won), led Olix’s stock price to hit the upper limit for three consecutive trading days, rising to around 40,000–50,000 won per share. This means the total amount Hugel secured from the sale is estimated to be at least 14 billion won.
Hugel explained that after canceling a technology transfer agreement with Olix for the treatment of hypertrophic scars in Asia in 2023, they made a strategic decision to sell all their shares in Olix.
Hugel had originally invested 3 billion won in Olix, a non-listed company, in 2015, acquiring 377,796 shares. This investment followed the transfer of the hypertrophic scar treatment technology "BMT101" from Olix. At the time, the share value was 7,940 won per share. Hugel sold part of its Olix shares in 2020 for nearly 9 billion won, realizing a profit of 9 billion won, which resulted in the reduction of its shares to 177,796. After Olix carried out a stock dividend, Hugel’s shares increased back to 355,592 shares. As a result, Hugel gained a total profit of 200 billion to 250 billion won from its initial 30 billion won investment through two rounds of sales.
Meanwhile, the price of Olix shares, which had surged nearly 200% over the past month, has recently been falling. This decline is thought to be influenced by Olix's announcement of a large-scale conversion right exercise. Olix announced on April 7 that 70.8 billion won worth of conversion rights would be exercised on March 26, at a conversion price of 13,526 won per share, less than a third of the current price. This is expected to result in the issuance of around 520,000 new shares, which accounts for 2.81% of Olix’s total outstanding shares.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
