'Company Name Change' Trend in Pharmaceutical and Bio Industries

[Asia Economy Reporter Lee Chun-hee] Companies in the pharmaceutical and biotech industries are increasingly changing their names. Given the dynamic nature of the pharmaceutical and biotech sectors, this trend is seen as a way to express their determination for a fresh start through changes in shareholding structures such as mergers and acquisitions (M&A), or to signal their intent to enter new business areas in search of new growth engines.

Boryung Pharmaceutical changed its name from 'Boryung Pharmaceutical' to 'Boryung' at the regular shareholders' meeting on the 25th. By removing the label 'Pharmaceutical,' it is viewed as a move to broaden its scope and pursue a wider range of businesses. Boryung explained, "In a changing environment, we decided to change our name to expand growth and investment opportunities not only in the domestic pharmaceutical industry but also in the global market and the healthcare industry as a whole."

There is also analysis that this name change expresses the completion of management succession. At this shareholders' meeting, Boryung not only changed its name but also appointed Kim Jeong-gyun (37), CEO of Boryung Holdings, as an inside director of Boryung. At the subsequent board meeting, he was appointed as CEO and chairman of the board. Through this, CEO Kim has solidified his ownership by overseeing the management of both the holding company Boryung Holdings and the operating company Boryung. Kim is the grandson of Boryung Pharmaceutical founder Kim Seung-ho and the son of Kim Eun-sun, chairperson of Boryung Holdings. During his management involvement, he attracted attention by changing his name from 'Yoo Jeong-gyun' to 'Kim Jeong-gyun.'

Pharmgen Science is another example of a company changing its name with a similar purpose. The company formerly known as Wooridul Pharmaceutical changed its name to combine 'Pharm' (Pharmaceutical), 'Gen' (Gene), and 'Science.' They plan to launch a 'Bio New Drug Promotion Team' utilizing artificial intelligence (AI) and big data to pursue bio new drug research.

Duol Mulsan, previously an automotive interior materials company, revealed its intention to enter the anticancer new drug development business last year and changed its name to Canaria Bio. Through the image of the canary bird symbolizing joy and peace, the company aims to actively develop immuno-oncology drugs. Canaria Bio is currently conducting clinical trials for 'Oregobomab,' an immuno-oncology drug for ovarian cancer.

There are also cases where names changed not due to business changes but because shareholding structures held by multiple companies were reorganized or subsidiary structures were restructured. DM Bio changed its name to STGen Bio as of the 1st. Originally established as a joint venture between Dong-A Socio Holdings and Japan's Meiji Seika Pharma, it became a wholly owned subsidiary of Dong-A Socio Holdings last year after Dong-A Socio Holdings acquired all shares of Meiji Seika Pharma.

'ST' stands for 'Science Technology' and is a name commonly found among subsidiaries of the Dong-A Socio Group, such as Dong-A ST and ST Pharm. This is a case of changing the name to establish identity within the group. Choi Kyung-eun, CEO of STGen Bio, stated, "We plan to diversify our business from producing bio-pharmaceuticals centered on existing monoclonal antibodies and recombinant proteins to next-generation modality drugs such as gene and cell therapies. STGen Bio will not merely change its name but will take a leap forward as a global contract development and manufacturing organization (CDMO) through ongoing projects."

GC Green Cross is also actively changing names during the process of merging subsidiaries. GC Green Cross Healthcare changed its name to GC Care in January. The company plans to lead the market by expanding its existing B2B business to B2C and providing various services to grow into an IT platform company.

Earlier, at the end of last year, GC Green Cross announced the launch of 'GC Cell,' an integrated corporation formed by merging GC Green Cross LabCell and GC Green Cross Cell. The plan is to strengthen capabilities by organically combining LabCell’s cell therapy research and process technology with Cell’s manufacturing capabilities. Through this, they aim to develop cell therapies across various areas including T cells, NK cells, CAR-T cells, and CAR-NK cells in the immuno-cell therapy field that both companies have been jointly developing.

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