CJ CheilJedang Acquires Microbiome Company 'ChunLab'

[Asia Economy Reporter Moon Hyewon] CJ CheilJedang is acquiring life science information company ‘ChunLab’ and embarking on the development of next-generation drug technologies based on the ‘microbiome.’ The microbiome is a term combining Microbe and Biome, referring to the tens of trillions of microorganisms and their genes residing in the human body.

CJ CheilJedang announced on the 21st that it will acquire ChunLab. The acquisition amount is approximately 98.3 billion KRW, securing a 44% stake by combining ChunLab’s existing shares and new shares issued through a paid-in capital increase. ChunLab resolved and disclosed this matter through its board of directors on the same day.

With the acquisition of ChunLab, CJ CheilJedang will expand its business areas from green-white bio to red bio. By integrating CJ CheilJedang’s top-level microbial, strain, and fermentation technologies with ChunLab’s precise microbiome analysis, substance discovery capabilities, and big data, the company plans to focus on developing next-generation drug technologies as a new growth engine.

Microbiome-based new drugs are still in the early market stage. Currently, the US pharmaceutical company Seres, considered the most advanced, is in Phase 3 FDA clinical trials, and the market is regarded as having significant growth potential.

As CJ CheilJedang recently organized its health business as an independent organization (CIC) to strengthen business capabilities, synergy between red bio and the health business is also expected.

ChunLab was established in 2009 and is a specialized company focused on microbiome research and development. It has secured precise microbiome classification technology and platforms and is conducting numerous cohort studies (comparative control group disease research) with hospitals and research institutions. It holds over 5,600 physical microbiome strains, the largest scale in Korea. In particular, it has strengths in microbial data analysis related to new drugs and in the basic research stage, which is expected to further evolve CJ CheilJedang’s microbial-related technologies.

A CJ CheilJedang official said, “The microbiome is regarded globally as a next-generation technology, so acquiring ChunLab is a strategic investment necessary to secure future growth engines,” adding, “Following the already globally top-level green bio and high value-added white bio, we will strengthen global competitiveness in the red bio field as well.”

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