LG Chem to acquire Nasdaq-listed U.S. firm Aveo for $566 mn

LG Chem will spend $566 million to acquire Nasdaq-listed U.S. firm Aveo Pharmaceuticals in a bid to make inroads into the American oncology market.

The Korean chemicals giant said in a regulatory filing on Tuesday that its board approved a plan to fully own Aveo for $15 per share in an all-cash transaction. The deal is expected to close in three to six months, which would make LG Chem the first Korean company to buy a biotech firm with a new FDA-approved drug.

Based in Boston, Massachusetts, Aveo went public in the United States in 2010 and developed Fotivda (tivozanib), a renal cell carcinoma approved by the U.S. Food and Drug Administration in 2021.

Aveo has its own sales and marketing organization in addition to teams for clinical development and regulatory affairs. Aveo is expected to generate some 150 billion won ($106 million) in sales this year, a nearly three-fold increase compared to the previous year.

The company’s revenue consensus for fiscal year 2027 is 500 billion won.

"The acquisition is the most important milestone in the 40 years of history in LG Chem’s bio business. Through the transaction, we will strengthen our capabilities in clinical development and commercialization in the U.S. market,” said LG Chem’s Vice Chairman Shin Hak-cheol.

LG Chem shares closed 3.11 percent lower at 592,000 won on Wednesday.

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