According to Pulse by Maeil Business News Korea,

Korean mid-sized pharmaceutical companies are aggressively seeking out M&As to drive growth beyond organic expansion, diversify portfolio, and build economies of scale.

According to industry sources on Monday, Daewon Pharmaceutical Co. is due to acquire health supplement manufacturer Keukdong Health Pharm Co. on Wednesday. Daewon Pharm will inject 14.1 billion won to buy an 83.51 percent stake or 59,793 shares in the company. Keukdong has four patents in health supplement manufacturing. Keukdong was recently chosen by local health authorities as a company to meet high-quality manufacturer standards.

Shinpoong Pharm Co. is another Korean pharma looking for a peer company that could amplify its pipeline of first-in-class drugs. Shinpoong currently owns cash of about 250 billion won earned from its recent stake sale.

Huons Global Co. drew market attention for its acquisition of Kosdaq-listed Blossom M&C Co. in February. Blossom M&C recently asked a court to end bankruptcy rehabilitation. The 58 billion won deal is due to be completed this month.

The transaction is expected to create new income sources in coordination with Huons Group affiliates such as Humedics involved in aesthetics business and Hubena in cosmetic and medical containers, according to a Huons Group official.

Blossom M&C is dedicated to makeup sponges, puffs and other beauty tools.

From the second half of this year, there will be various types of small and medium-sized M&A deals valued less than 1 trillion won ($890 million), said Huh Hye-min, an analyst from Kiwoom Securities.



By Kim Si-gyun and Minu Kim

Copyrights Pulse by Maeil Business News Korea. All Rights Reserved.

Source: Pulse by Maeil Business News Korea (May 25, 2021)