NKGen Biotech selected as preferred stalking horse bidder for NKMax

NKGen Biotech (NKGN) announced it has been selected as the preferred stalking horse bidder for NKMax in NKMax’s court-managed rehabilitation process in South Korea. NKMax filed for rehabilitation in South Korea, roughly similar to Chapter 11 in the U.S., on April 18 and currently holds an approximate 25% equity interest in NKGen. NKGen’s proposal included up to $18M in committed funding from a third-party investor. As is typical in US bankruptcies, there will now be a public offering process, with NKGen having final right of first refusal on any other qualified offers, with the final decision and ultimate rehabilitation plan approved by NKMax’s creditors and the court expected in February 2025 and closing thereafter. NKGen and its financing partners expect to hold a majority of the equity of NKMax at closing. NKMax currently holds master global rights to the intellectual property for troculeucel and other proprietary IP that is licensed to NKGen for markets outside Asia. Such an acquisition is expected to put global rights under the control of NKGen. Prior to entering into the rehabilitation process, NKMax announced plans and commenced initial groundwork to commercialize the troculeucel treatment for Alzheimer’s and other neurodegenerative diseases in Japan and South Korea, where such NK cell treatment is legal already. The company said additional production capacity at NKMax’s GMP facility will be an added benefit which could help accelerate production for US trials. NKGen does not believe the NKMax rehabilitation process has had any material negative impact on NKGen’s business or prospects.