Shares of Enzychem Lifesciences rallied Tuesday afternoon after news that retail giant Lotte Group has approached the Kosdaq-listed company to tap partnership in life science business.

On Wednesday, Enzychem Lifesciences shares gained 10.3 percent to close at 122,100 won ($108.15).

Lotte Holdings shares also rose 1.07 percent to end at 33,100 won.

According to Lotte Group on Monday, the group’s holding company is discussing business cooperation with Enzychem over ways to venture into drug development and contract manufacturing.

A Lotte Group official said various investments are being sought for business growth strategies, but declined to confirm developments.

Enzychem founded in 1999 is a pharma startup dedicated to APIs, functional food and novel therapies for the global market.

Sources said Lotte Holdings will invest more than 150 billion won in Enzychem to become its second largest shareholder. The investment plan could be put to vote during its shareholder’s meeting due on Friday. Lotte Holdings and Enzychem may also establish a joint venture for life science business.

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