HLB bioStep researchers analyze bio samples at its analysis center in Songdo, Incheon, in this Nov. 1, 2023 photo. Courtesy of HLB Group

HLB Group, a local biotech firm, is expanding its business portfolio by making strategic investments in promising domestic biotech startups, the company said Thursday.

The group, best known for HLB, which developed Rivoceranib, the cancer drug, has made investments in biotech startups with specialized technologies as part of its portfolio diversification strategy, including Neocannbio, a company developing a treatment for epilepsy, and Atheon Bio, a company developing antibody cancer drugs.

As part of its initiative, HLB Group said it made another strategic investment in NeuroVenti, which is developing treatments for brain disorders such as autism. The investment in NeuroVenti by HLB is in the amount of 1 billion won ($754,300), and it is being made via the HLB Group Fund, operated by the group's investment arm, HLB Investment.

NeuroVenti is developing drugs targeting autism spectrum disorders, attention deficit and hyperactivity disorder and depression and is also operating a clinical development and research organization (CDRO) business specializing in neurological disorders.

HLB expects synergies from cooperation with NeuroVenti through this investment.

"A strategic cooperation between HLB Group and NeuroVenti is expected to become more active in terms of developing epilepsy treatments that HLB Life Science is researching, cooperation in the non-clinical CDRO business for brain disorders with HLB bioStep, and securing new drug pipelines through an AI drug development platform," a group spokesperson said.

In addition to the recent investment, HLB Group announced in February that it invested in the antibody cancer drug developer Atheon Bio, to expand its drug development pipeline.

Specifically, HLB and HLB Investment participated in Atheon Bio's Pre-Series A investment worth 1 billion won. Through this investment, HLB Group became the second-largest shareholder of Atheon Bio.

Along with the investment, HLB Life Sciences will cooperate with Atheon Bio to explore various possibilities by combining its targeted cancer drug Rivoceranib with Atheon Bio's key pipeline ATN001.

ATN001 is an antibody drug that inhibits abnormal blood vessels created for cancer growth, enhancing the effect of anticancer drugs and combination drugs such as immunotherapy, the group said.

"Atheon Bio said its animal experimentation confirmed synergistic effects when the candidate drug is combined with immune checkpoint inhibitors on cancerous vessels," HLB said.

In addition, HLB Investment invested in Dyphi, a company developing solutions for diagnosing and treating sarcopenia.