Medipost, Attention to the Rapid Business Execution of Private Equity Major Shareholder

[Asia Economy Reporter Jang Hyowon] SangSangin Securities analyzed on the 28th that Medipost is expected to see faster business execution and changes in clinical trial speed due to a change in major shareholders. Medipost's major shareholders have changed to Skylake and Crescendo Private Equity Fund.

Researcher Ha Taegi of SangSangin Securities stated, “The business portfolio consists of 49% cord blood storage, 30.0% cell therapy (Cartistem), and 21.0% health supplements and others. Despite sales approaching 60 billion KRW, there has been a recent trend of expanding operating losses,” adding, “There may be efforts to improve the high-cost structure in the future and change the structure to generate operating profits excluding variables such as clinical/research and development expenses.”

Researcher Ha also explained, “With the capital significantly strengthened by raising 70 billion KRW through convertible bonds and 70 billion KRW through convertible preferred stocks (CPS), and if the data from future global clinical trials are favorable, additional fundraising is possible, so clinical trials can proceed faster than in the past.”

He further noted, “In the North American market, when Cartistem undergoes clinical trials or commercialization/marketing, synergy with the private equity fund can be expected,” and predicted, “Overall, overseas clinical trials and business progress will gain momentum compared to the past, and the business will proceed focusing on profitability.”

Medipost acquired Omnia Bio, a Canadian cell and gene therapy CDMO company, for about 90 billion KRW in the first half of this year. Going forward, Omnia Bio plans to create synergy in global clinical trials and commercialization by producing its own cell therapy CDMO products as well as Cartistem and Smebcell.

Finally, he expressed expectations that the global clinical trials for Smebcell and Cartistem will accelerate. He analyzed, “Phase 2 clinical trials of Smebcell are underway, and results can be confirmed in the first quarter of 2024,” and “The clinical trials of Cartistem in Japan and the United States are expected to proceed faster than before.”

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