NewG Lab Pharma Strengthens Distribution Business Through Live Commerce

[Asia Economy Reporter Hyungsoo Park] Newgelab Pharma is shifting its existing product distribution business to focus on the metaverse and live commerce in line with the non-face-to-face (untact) trend activated after COVID-19. The company plans to recover market share that had shrunk due to COVID-19 and secure stable operating profits in the distribution business to accelerate its new drug development projects.

On the 3rd, Newgelab Pharma announced that it acquired convertible bonds (CB) worth 12 billion KRW issued by Initial, the largest shareholder of Bucket Studio. Newgelab Pharma signed a memorandum of understanding (MOU) for business cooperation with Bucket Studio, including the distribution of live commerce products through ‘Bithumb Live’.

Newgelab Pharma will reorganize its distribution channels for CCTV, mobile devices, IT devices, and home appliances, which were previously focused online, into metaverse and live commerce channels. It will actively utilize these channels when launching new products such as the functional cosmetics brand ‘Dermacosmetic’.

Newgelab Pharma has experience in joint projects through strategic investment in the metaverse platform specialist company ‘3D Factory’. The company plans to actively leverage the know-how and resources accumulated at that time to fully establish a foundation for live commerce and metaverse businesses.

A Newgelab Pharma official said, "This is a strategic choice to strengthen the competitiveness of existing businesses while maintaining a growth strategy centered on new drug development," and added, "We will secure the best partners aligned with the latest distribution trends and strengthen the revenue model of the distribution business to support the new drug development projects."

He continued, "Initial is the largest shareholder and control tower of ‘Bucket Studio’, which recently launched ‘Bithumb Live’, combining metaverse, live commerce, blockchain, and NFT (non-fungible token) technologies."

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