Digital asset hedge fund Parataxis Capital Management (PCM), based in New York, is acquiring Bridge Biotherapeutics, a drug development company listed on KOSDAQ.
PCM announced on the 20th that it will invest 25 billion won in Bridge Biotherapeutics to acquire ownership equity. Consequently, the company name of Bridge Biotherapeutics will be changed to ‘Parataxis Korea.’
Edward Chin, co-founder and Chief Executive Officer (CEO) of PCM, will join the board of Parataxis Korea, while partner Andrew Kim will serve as the representative director. Lee Jung-kyu, co-founder of Bridge Biotherapeutics, is expected to continue leading the biotech business and act as a board member.
Bridge Biotherapeutics' decision to sell management rights stems from the increased likelihood of delisting due to the failure of clinical trials for its new drug candidates. Earlier, in March, Bridge Biotherapeutics disclosed that there were reasons for designation as a management issue due to continuous business losses before tax exceeding 50% for more than two times in the past three years, relative to its equity.
Originally, Bridge Biotherapeutics planned to resolve the reason for delisting by transferring the new drug candidate BBT-877 for idiopathic pulmonary fibrosis. However, after disappointing results emerged from the phase 2 clinical trial of BBT-877 on April 14, securing funds through the transfer became challenging, leading to the decision to pursue a sale of management rights.