Jinwon Life Science announced in a regulatory filing on the 16th that its subsidiary VGXI, Inc. generated no revenue from its CDMO (Contract Development and Manufacturing Organization) business for the January-June period, as related production was suspended during the first half of this year.

This filing is the definitive response to a request for disclosure regarding rumors or reports, demanded by the Korea Exchange the previous day, July 15.

Production Suspension Status by Plant

Both the first plant in Woodland, USA, and the second plant in Conroe suspended CDMO-related production during the first half. The company explained that the suspension of finished pharmaceutical production is not a business suspension due to legal or administrative actions, nor a management paralysis, but rather a technical and temporary measure to prepare for internal process optimization and the validation of human and material Standard Operating Procedures (SOPs). The raw materials and critical clinical assets of clients are being managed through stability testing and other procedures in accordance with cGMP standards.

The first plant is preparing to transition toward small-scale finished pharmaceutical production projects (Small-scale Niche Fills) based on its proprietary patented technologies in the future. It is formulating line allocation and raw material procurement strategies to meet the demand for a total of 26 production runs within the next 10 months. The second plant has no production record since its new construction; following financing, it plans to prepare for operations by undergoing commissioning and re-qualification (C&Q) and applying a process optimization system incorporating new technologies such as AI.

Business Activities Are Ongoing

The company cited asset due diligence and production line adjustments for plant restarts as the reasons for the temporary suspension of finished production, which led to poor revenue. However, it noted that business activities are continuing and that previously delayed client services have fully resumed. The company has been continuing its sales efforts, including participating in the '2026 Bio International Convention' held in the United States last June.

Specifically, as of June 25, the company signed a letter of intent worth 16.9 million USD with a new client and is preparing a definitive agreement. It has also received additional production quotation requests from two existing clients.

The company's policy is to quickly realize revenue alongside the launch of new projects in the second half of the year and to pursue a business turnaround through new work agreements.