Ildong Pharmaceutical Establishes R&D Dedicated Subsidiary... "Improving Financial Structure and Strengthening Competitiveness"

Tentatively Named 'Yunobia', Launch Scheduled for November 1
Cost Burden Relief... New Subsidiary to Focus on R&D
Q2 Operating Loss of 18 Billion Won... Sales Down 5.1%

Ildong Pharmaceutical is separating its research and development (R&D) division to establish a new subsidiary dedicated to new drug R&D.

Exterior view of Ildong Pharmaceutical headquarters.
[Photo by Ildong Pharmaceutical]

On the 9th, Ildong Pharmaceutical held a board meeting and approved the agenda regarding the corporate split. The split method is a simple physical division, with Ildong Pharmaceutical as the parent company holding 100% of the shares of the newly established company. The name of the new corporation is tentatively 'Unovia,' and it is scheduled to launch on November 1 after going through related procedures such as a provisional shareholders' meeting resolution.

Ildong Pharmaceutical explained that the split decision was made focusing on rapid improvement of the financial structure, enhancement of corporate and shareholder value through increased profitability, strengthening momentum related to new drug R&D, and expanding investment attraction.

The company emphasized that, for the existing Ildong Pharmaceutical, which is centered on the pharmaceutical business and consistently produces steady performance such as sales growth, resolving cost burden factors will secure a stable financial structure and enhance the competitiveness of core business sectors.

The newly established corporation will build an independent position related to new drug research and development, improving expertise and efficiency, as well as gaining advantageous conditions in terms of securing partners through open innovation and investment attraction.

In particular, by utilizing assets such as ongoing new drug development projects including ▲type 2 diabetes treatments ▲peptic ulcer treatments ▲Parkinson's disease treatments, and promising pipelines to be newly added, the plan is to raise necessary capital through large-scale investment attraction exceeding 100 billion KRW for the new corporation.

An Ildong Pharmaceutical official stated, "The newly established subsidiary will be able to focus on R&D from an independent position," adding, "As the parent company Ildong Pharmaceutical will also benefit from profits depending on the success of new drug development or license-out achievements, both companies have advantages in terms of enhancing corporate value and competitiveness."

The official further said, "With the recent management reform efforts and this R&D division split as an opportunity, Ildong Pharmaceutical aims for a swift improvement in management indicators such as turning a profit, sales, and operating profit," and added, "We also plan to strive for shareholder value realization through dividend policies based on future business activities and performance."

Meanwhile, Ildong Pharmaceutical failed to escape losses in the second quarter of this year as well. The company disclosed on the same day that its consolidated operating loss for the second quarter was preliminarily estimated at 18.035 billion KRW, which is an 18.1% improvement compared to the same period last year.

During the same period, sales decreased by 5.1% to 153.72 billion KRW, and net loss turned to 23.57 billion KRW.

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