Sselma Acquires 27% Stake in Russian Medical Device Company 'Bebik'... "Plans to Sell Products in Korea, US, and Europe"

[Asia Economy Reporter Hyunseok Yoo] Cellma Therapeutics has decided to acquire a 27% stake in the Russian medical device company BEBIG. Recently expanding its business into medical devices through amendments to its articles of incorporation, Cellma plans to sell BEBIG's products domestically and internationally through this equity acquisition.

According to a disclosure by the Financial Supervisory Service on the 27th, it was announced that Cellma decided to acquire 2,700 shares of Russia's NBT CJSC for 24.3 billion KRW. The purpose of the acquisition is to enter the bio-medical device business, and the post-acquisition shareholding ratio will be 27%.

Cellma Therapeutics will pay 300 million KRW in cash and the remaining 24 billion KRW will be paid through the 49th series convertible bonds (CB). Specifically, it will acquire 1,300 shares from LLC ZVEZDA and 1,400 shares from Otkrytie LLC, the major shareholders of NBT CJSC. NBT CJSC is a holding company that owns 100% of BEBIG, a specialist in radiation embolization in Russia. LLC ZVEZDA, Otkrytie LLC, and two other corporations are the major shareholders.

BEBIG, which Cellma is acquiring, is a company specializing in medical devices and radiation embolization. Radiation embolization is a treatment method that injects microspheres (tiny glass beads) loaded with radioactive isotopes into liver cancer, pancreatic cancer, etc., unlike conventional chemoembolization which uses embolic agents and anticancer drugs. It is known to improve the side effects of anticancer drugs and low tumor response rates compared to existing methods. In particular, it has cost competitiveness compared to competitors.

BEBIG has completed all clinical trials and sales approvals related to radiation embolization and has finished factory facilities for final commercialization at its own expense. Especially through self-produced medical devices and distribution, it achieved sales of 16.9 billion KRW, operating profit of 10.8 billion KRW, and net profit of 6.6 billion KRW as of the end of last year.

Hanmi Accounting Corporation, which evaluated Cellma's acquisition of BEBIG, forecasted continued growth for BEBIG. Hanmi assessed that the Russian medical device market has been growing at an average annual rate of about 9% from 2014 to 2018 based on the ruble. Along with this, BEBIG is expected to record sales of 1,085,854,000 rubles and EBIT of 443,014,000 rubles in 2020. It is further expected to increase to sales of 2,158,927,000 rubles and EBIT of 927,714,000 rubles by 2024.

Cellma's strategy is to sell BEBIG's products in Korea, the United States, and Europe. BEBIG has currently completed factory establishment and plans to start product production and sales within the first half of the year. A Cellma official stated, "BEBIG's products will apply for clinical trials in the U.S., Korea, and Europe within the first half of the year and proceed with product sales within one year."

Meanwhile, Cellma Therapeutics is recently restructuring itself as a specialized bio-medical device company. After holding the regular shareholders' meeting yesterday, it newly added to its articles of incorporation ▲manufacturing of radiation devices ▲import, sales, and maintenance of medical-related equipment and facilities ▲marijuana cultivation, investment, distribution, and manufacturing of applied pharmaceuticals. Existing medical businesses related to pets and others were excluded.

This content was produced with the assistance of AI translation services.