Uridul Hubrain Completes Merger with Pharmaceutical Distributors and Other Subsidiaries... "Accelerating MRO Business"

[Asia Economy Reporter Hyunseok Yoo] Wooridle Hubrain announced on the 29th that it will actively strengthen its competitiveness in the pharmaceutical and medical device distribution business through the absorption merger of its two subsidiaries, ‘J&SPHARM’ and ‘H Bio & Company.’ The merger date was on the 11th, and the merger completion and registration were finalized on the 21st of the same month.

The background of the merger is to maximize synergy effects linked to the expansion of the existing pharmaceutical supply business scale and to enter the new medical device supply business and diversify operations.

‘J&SPHARM’ sells pharmaceuticals to hospitals, pharmacies, and pharmaceutical wholesalers, while ‘H Bio & Company’ provides medical consumables such as knee and spinal artificial joints to major large hospitals nationwide. Over the past two years, the average annual sales growth rate exceeded 50%, and operating profit continued to grow in double digits. The combined sales of the two companies last year totaled 20.1 billion KRW, with an operating profit of 3.2 billion KRW. This year, as of the end of May, cumulative sales reached 8.9 billion KRW, and operating profit was 1.4 billion KRW.

Wooridle Hubrain held a board meeting last March to expand sales and secure mid- to long-term business competitiveness, approving the absorption merger of the two subsidiaries. The merger was conducted in a non-capital increase method without issuing new shares, with Wooridle Hubrain as the surviving company absorbing the subsidiaries.

With the completion of the merger process, from the third quarter of this year, the performance of the two merged companies will be fully reflected, and the company plans to focus on securing profitability to succeed in turning a profit in the second half of the year.

By merging with subsidiaries that showed about twice the operating profit compared to peer companies, the company has secured profitability and financial stability. At the same time, through creating merger synergies, it is expected to accelerate the expansion of the hospital MRO (Maintenance Repair and Operating) business and aggressively target the relevant market.

A Wooridle Hubrain official stated, “Through the merger of subsidiaries, we will strengthen competitiveness in the pharmaceutical and medical device businesses and increase management efficiency to enhance corporate value,” adding, “We will actively execute growth strategies for the pharmaceutical and medical device businesses, which are the company’s future growth engines, to improve corporate value and shareholder interests.”

Currently pursuing a rights offering, Wooridle Hubrain confirmed the first issuance price at 1,315 KRW on the 4th, making the total public offering amount approximately 35.7 billion KRW. The final public offering price is scheduled to be confirmed on the 6th of next month, and the raised funds will be used as resources to secure financial soundness, laying the foundation to focus intensively on the pharmaceutical and quasi-drug business.

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