[Edaily Reporter Kim Jinsoo ] HANS BIOMED CORPORATION(042520)is expanding its stake in its affiliate, A-Tems, with the aim of maximizing investment returns on A-Tems’ core pipeline. Given that A-Tems possesses technology and expertise in tissue regeneration, HANS BIOMED CORPORATION is also mapping out a broader strategy for business expansion.

According to the Electronic Securities System on the 15th, HANS BIOMED CORPORATION acquired additional shares in A-Tems during the second quarter of this year, raising its stake from 43.04% to approximately 48%. Following its investment of approximately 3 billion won in A-Tames’ paid-in capital increase in 2024, HANS BIOMED CORPORATION decided in March of this year to convert an existing loan of 3 billion won into equity, and in April, to convert another 1 billion won into equity. This move is interpreted as a strategic decision to increase its stake in A-Tames in order to generate greater profits in the future.

A-Tems is a company that develops advanced tissue regeneration therapies based on tissue engineering technology. There is significant business synergy, as HANS BIOMED CORPORATION can add cartilage regeneration therapies to the business foundation it has built in the fields of skin and bone grafts and medical devices. In other words, the investment in A-Tems is linked to the expansion of its existing tissue regeneration business.

The Value of A-Tames’ ‘A-Paste-C’

A-Tems’ main pipeline, “A-Paste-C,” is a therapeutic candidate for treating knee cartilage defects caused by trauma or degenerative arthritis. It consists of allogeneic fetal chondrocytes and the cartilage-specific extracellular matrix (ECM) secreted by these cells. Its distinguishing feature is that it is based on cells and their self-generated ECM, rather than relying on separate xenogeneic or artificial scaffolds to maintain its shape.

A key feature of A-Paste-C is that the chondrocytes and chondro-specific ECM are already present together at the time of implantation. Compared to approaches that induce other cell types to differentiate into chondrocytes, this product is essentially prepared in advance to form cartilage tissue.

A-Paste-C is a gel-like cartilage tissue with a composition similar to natural cartilage, designed to be applied to conform to the shape of the defect site. A particular advantage is that it uses allogeneic cells, eliminating the need to harvest the patient’s own cartilage separately for each individual.

Products utilizing chondrocytes have also been commercialized overseas. “MACI” by Vericell in the U.S. is a product in which autologous chondrocytes are cultured on a porcine-derived collagen membrane. “Sperox,” which is approved in Europe, is similar to A-Paste-C in that it consists of autologous chondrocytes and self-generated ECM; however, A-Paste-C differs in that it utilizes allogeneic fetal chondrocytes.

If A-Paste-C demonstrates significant cartilage regeneration and improvements in pain and function during its upcoming Phase 2 clinical trial, its value is expected to rise further, and this is ultimately expected to translate into profits for HANS BIOMED CORPORATION, which has been actively increasing its stake in A-Tems.

HANS BIOMED CORPORATION official stated, “A-PASTE-C is a new treatment for knee cartilage defects currently under development based on an approach that differentiates it from existing therapies,” adding, “Research utilizing fetal cartilage cells has been partially validated in clinical papers related to rheumatoid arthritis.”

Synergy Expected from HANS BIOMED CORPORATION’s Investment in A-Tems

HANS BIOMED CORPORATION maintains its commitment to providing the necessary support for A-Tems’ stable R&D and clinical development. The rationale behind HANS BIOMED CORPORATION’s continued support for Aitemz and its decision to expand its stake is understood to be based not only on the development potential of A-Paste-C but also on a strategic assessment that leveraging Aitemz’s accumulated expertise in tissue engineering and ECM (extracellular matrix) technology will enable HANS BIOMED CORPORATION to expand its existing skin and bone graft business into cartilage, tendons, ligaments, and advanced regenerative therapies.

HANS BIOMED CORPORATION has accumulated experience in tissue processing, production, and ECM (extracellular matrix)-related businesses, primarily focused on human-derived skin and bone grafts. By integrating A-Tems’ cell- and ECM-based tissue engineering technologies with this expertise, the company can expand its existing tissue graft-centered business to include tissue-regenerative medical devices and advanced regenerative therapies.

In fact, A-Tems has already received approval for “Cartisave,” an intra-articular injection, as a collagen-based tissue filler. CartiSave is a product injected into the joint cavity to replenish cartilage that has been lost or damaged during surgical or non-surgical procedures; it is composed of collagen derived from porcine cartilage and key components of cartilage. A-Tems has already achieved results, such as proceeding with the evaluation process for CartiSave under the New Medical Technology Assessment system.

In addition, A-Tems is expanding its product lineup based on 3D cartilage tissue technology to include products such as disc treatments (A-Paste-D) and growth plate treatments (A-Paste-GP). Furthermore, having secured a pipeline of biomaterial medical devices—including “TenoSave” for tendons and ligaments, “EssenDerm” for skin, and ADM skin boosters—synergies with HANS BIOMED CORPORATION’s business are anticipated in the future.

HANS BIOMED CORPORATION official stated, “We are providing the necessary support to ensure A-Tames’ stable R&D and clinical development,” adding, “A-Tames’ management and research team will handle the specialized R&D and clinical trials, while HANS BIOMED CORPORATION will share key progress updates and business strategies and provide support where needed.”