SC Engineering "Subsidiary Cellontec Specialized in Regenerative Medicine Incorporated... Growing into a Leading Healthcare Company"

[Asia Economy Reporter Jang Hyowon] SC Engineering announced on the 1st that it has incorporated Cellontech, a regenerative medicine specialized bio company, as a subsidiary and plans to grow Cellontech into a comprehensive healthcare leading company.

According to the stock transfer agreement for Cellontech shares signed with Sewon ENC, SC Engineering completed the final payment on the 30th of last month and acquired 1.02 million shares (51%) of Cellontech. With the completion of the equity acquisition, Cellontech was incorporated as a subsidiary of SC Engineering.

Cellontech, which operates a bio-collagen-based biomaterial business, has led the foundation and growth of the domestic regenerative medicine industry since achieving the world's second commercialization of cell therapy products in 2001. Through over 20 years of research and development, it has commercialized nine bio-collagen-based therapeutic materials, two cell therapy products, and an umbilical cord blood storage system.

Cellontech is expected to see performance growth with the expanded sales of ‘CartiZol (collagen-based tissue supplement)’, the first collagen-based intra-articular injection officially launched in Korea in June. ‘CartiZol’ is a technology independently developed by Cellontech that administers bio-collagen (a component of the synovial membrane) into the joint cavity to supplement damaged or deficient articular cartilage, and it has obtained the Ministry of Health and Welfare’s New Excellent Technology (NET) certification and New Medical Technology recognition (NECA).

The cartilage membrane (synovial membrane) supplement function of ‘CartiZol’ meets the medical field’s demand for more than simple synovial fluid supplementation in the treatment of degenerative arthritis. Since its official release, within about two months, the supply and prescription of ‘CartiZol’ have expanded nationwide to specialized arthritis hospitals and clinics. The landing results at higher-level medical institutions, including university hospitals in the Seoul area currently under review and general hospitals or above, are also expected to accelerate continuously.

Cellontech is currently expanding a large-scale bio-collagen production plant in the Geumgok General Industrial Complex. SC Engineering plans to complete the bio-collagen production plant by 2022 in close cooperation with its subsidiary Cellontech and actively respond to the increasing demand in the domestic and global regenerative medicine as well as the beauty and plastic surgery markets by increasing the production of ‘CartiZol’ and bio-collagen raw materials.

An SC Engineering official stated, “With Cellontech incorporated as a subsidiary, Cellontech’s performance will be reflected in SC Engineering’s consolidated financial statements from the fourth quarter. Based on the synergy from acquiring Cellontech aligned with the increasing orders in the plant EPC (engineering, procurement, and construction) business, we will put various new bio and healthcare businesses on the main track and strongly drive the simultaneous growth of SC Engineering’s scale, substance, and future value.”

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