HLB Acquires HLB Sciences: What’s Happening?

On September 17, 2025, HLB announced its decision to acquire its subsidiary, HLB Sciences, a company specializing in pharmaceutical research and development.

Why the Merger?

  • Diversification of drug development portfolio and strengthening R&D capabilities: HLB aims to focus on its bio business and enhance its drug development capabilities.
  • Enhancing corporate value through management efficiency: The merger seeks to eliminate redundant functions, improve operational efficiency, and boost corporate value.
  • Expected synergy: HLB Sciences’ R&D capabilities are anticipated to create synergy with HLB’s existing drug development pipeline (Rivoceranib, Lirafugratinib, etc.).

Impact on HLB’s Stock Price?

While the merger announcement can be seen as a positive sign of the company’s growth ambitions, the market reaction is expected to be cautious considering HLB Sciences’ low sales and losses, coupled with HLB’s ongoing R&D investment burden. It’s unlikely to act as a short-term stock price catalyst, and tangible R&D achievements and management efficiency improvements are necessary for a positive impact.

What Should Investors Do?

  • Monitor R&D synergy effects: Closely track R&D performance and milestone achievements post-merger.
  • Check financial soundness management and efficiency efforts: Continuously observe HLB’s financial health and R&D investment efficiency efforts after the merger.
  • Analyze sensitivity to changes in the macroeconomic environment: Keep track of the impact of fluctuations in macroeconomic indicators such as exchange rates, interest rates, and oil prices on HLB.