Genexine said Tuesday it has revoked the merger agreement with Toolgen because of biopharmaceutical industry’s recent downturn, prompting shareholders to rush for the exercise of appraisal rights beyond limitations.

The two companies announced their merger on June 19 and received approval from the shareholders on July 30. The merged entity had planned to develop an immune gene therapy drug such as universal chimeric antigen receptor-T (CAR-T) by integrating the two companies' genetic correction, immunotherapy, and gene vaccine technology.

"Although the merger failed, investors seem to give Genexine a positive opinion as it is trying to detect and prepare for the future direction of the bio-industry," the company said. "The response of foreign institutions had confirmed such interest from investors, and the share of foreigners has been increasing steadily after the company conducted various overseas investor relations activities related to the merger."

Genexine will continue to cooperate with Toolgen, as it still believes Toolgen's gene-editing technology is an essential part of the future bio-industry, the company added.

"It is a pity that the merger has fallen through, but the two companies have already established specific partnerships for the development of gene therapy products regardless of the merger," a Genexine official said. "We are building an allogeneic CAR-T pipeline and plan to enter clinical trials by the second half of 2020."

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