HLB Therapeutics Acquires Cold Chain Company 'SJ Pharm'

An Gi-hong "We Will Become the No.1 Biologics Distribution Company in Korea"

HLB Therapeutics has expanded its vaccine distribution business by acquiring SJ Pharm, a cold chain specialist company. After entering the vaccine distribution business through the acquisition of YS Pharm in 2018 and being selected as a COVID-19 vaccine storage and distribution operator this year, the acquisition of SJ Pharm is interpreted as a plan to accelerate the expansion of its vaccine business.

HLB Therapeutics announced on the 16th that it will acquire 100% of SJ Pharm's shares. A representative of HLB Therapeutics explained, "As the world is suffering from measles due to COVID-19 and Mpox (monkeypox), the incidence cycle of infectious diseases caused by climate change is also expected to shorten," adding, "This is a proactive step to respond." Having been selected by the Korea Disease Control and Prevention Agency as the ‘2023 COVID-19 vaccine storage and distribution operator’ and exclusively managing public COVID-19 vaccines, the company plans to strengthen its cold chain business through this acquisition.

The total acquisition price is approximately 5 billion KRW. HLB Therapeutics plans to raise funds by paying half, 2.5 billion KRW, in cash, and the remaining half, 2.5 billion KRW, by issuing convertible bonds (CB) to eight existing major shareholders of SJ Pharm, including Lee Jae-eun and Lee Pil-hyung.

HLB Therapeutics explained that it decided on this acquisition because SJ Pharm has long-standing vaccine distribution know-how and a broad distribution network. Currently, it distributes vaccines such as influenza and hepatitis B produced by GC Green Cross, Boryung Biopharma, Huons, and Humedix. Recently, it was also entrusted by the Korea Disease Control and Prevention Agency to store and distribute Mpox treatments. It currently operates logistics centers in Icheon, Gyeongnam, and Jeju regions, and is planning to expand infrastructure further in the Honam region.

Through this acquisition, HLB Therapeutics plans to establish a nationwide cold chain distribution network including the Jeju region and prepare a faster and safer transportation system by utilizing Internet of Things (IoT) technology.

Ahn Ki-hong, CEO of HLB Therapeutics
[Photo by HLB Therapeutics]

HLB Therapeutics CEO Ahn Ki-hong said, “We have already secured the cold chain infrastructure and know-how necessary for global big pharma companies’ direct entry into the domestic vaccine market and are preparing a collaboration model for partnerships,” adding, “We will continue to strengthen our cold chain business capabilities and become the number one specialized biological product distribution company in Korea.”

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