DX&VX To Acquire Korea Biopharmaceuticals For 15 Billion Won… 'Entering The CDMO Market By Securing GMP'

DxVx entered the bio-healthcare commissioned development and manufacturing (CDMO) market and established an integrated business structure that leads to 'R&D-production-distribution' of its own brand. It announced on the 16^th that it had signed a contract to acquire a 100% stake in Korea Biopharmaceuticals, a leading food company, for 15 billion won.

Korea Biopharmaceuticals Korea Biopharmaceuticals was established in 1995 and is currently located in Jincheon, Chungcheongbuk-do as a health functional food manufacturing company that currently produces 120 products from 58 partner companies in the form of OEM/ODM. It has 10 production lines for powders, tablets, and capsules in the first and second factories of about 3,000 pyeong in total, and has an annual production capacity (CAPA) of 4.5 billion pieces of powder sticks, the main formulation. It is known that the company has a very strong profit structure with sales of 13.5 billion won and operating profit of 1.5 billion won last year.

Since February this year, DXNVX has been exporting and selling bio-health care products worth KRW 1 billion per month through online channels and 12,000 offline sales networks in the Chinese market. It said that it plans to expand export products to China using its own GMP production facility acquired from October of this year, and launch 10 products in the domestic market by commercializing technology and items researched and developed by its Microbiome Research Center step by step. Accordingly, Korea Biopharmaceuticals' estimated sales in 2023 are expected to increase significantly compared to this year, and at the same time, profitability is also expected to improve.

In particular, the value chain from diagnosis to prevention, which is the core of future medicine, plans to produce and provide various bio-health care products that can pursue preventive functions in daily life based on genome diagnosis technology.

Park Sang-tae, CEO of DX&VX, said, “Securing a production base this time has established a business structure that connects R&D capabilities to production. He said, “In order to secure a sustainable growth engine through R&D, profitability must be the foundation. .

As DX&VX has secured a bio-health care GMP production base, the synergy effect with the Corey Group, which is led by the largest shareholder Im Jong-yoon, president of Hanmi Pharmaceutical, is expected to become more concrete in the future. Based on the results of global clinical and consumer analysis accumulated by Corey Group over the past 10 years, it is known that the company plans to develop into high value-added products for women and the middle-aged, starting with pregnancy and childbirth, to pioneer domestic and overseas markets.

On the other hand, DX&VX has continued to grow remarkably since the joining of the largest shareholder Lim Jong-yoon and new management, recording 13 billion won in sales and 1.1 billion won in operating profit in the first half of this year. The company recently issued 17.8 billion won worth of convertible bonds (CB), confirming institutional investors' trust in future growth potential. DX&VX plans to build additional global research and production bases by stage with the funds raised by investment, and continuously secure domestic and foreign tangible and intangible assets such as drug pipelines.