Malaysia's CCM Duopharma Biotech Bhd. agreed to buy an 8.39% equity stake in South Korea-based PanGen Biotech Inc. for 59.2 million ringgit in cash.

PanGen Biotech develops biosimilars and provides services related to the development of biosimilar products. The Korean company also manufactures protein reagents along with assay kits and systems.

CCM will acquire 806,450 common shares in PanGen at 73.35 ringgit in cash per share.

Closing of the transaction will occur in the second quarter, subject to CCM shareholders' approval and other customary closing conditions.

Through the acquisition, CCM expects to enter the biotherapeutics medicine market with a lower cost by partnering with PanGen in developing its existing pipeline.

CCM Duopharma is engaged in the manufacture and distribution of pharmaceutical products and medicines.

As of June 13, US$1 was equivalent to 3.98 ringgit.