KPS Acquires 'Prescription Drug Leader' Hanguk Global Pharm... "Targeting 200 Billion KRW Sales Next Year"

KPS is acquiring Korea Global Pharmaceutical to diversify its business. This pharmaceutical company is a leader in the prescription-only ethical drugs (ETC) manufacturing industry, with an average annual sales exceeding approximately 40 billion KRW over the past three years.

According to the Financial Supervisory Service's electronic disclosure system on the 13th, KPS agreed to acquire 289,326 shares (96.44% stake) out of a total of 300,000 shares of Korea Global Pharmaceutical from Bitsarang and 36 others for 22.4 billion KRW. As a result, KPS's business performance is expected to grow even more rapidly.

The acquisition target, Korea Global Pharmaceutical, was established in 2009 and has obtained approvals for both prescription and over-the-counter drugs since 2011, selling finished pharmaceutical products to numerous medical institutions including GeoYoung. In 2017, after a GMP inspection by the Ministry of Food and Drug Safety, its sales exceeded 30 billion KRW for the first time. Last year, sales and operating profit were 39 billion KRW and 2.195 billion KRW respectively, and in 2022, they recorded 41.3 billion KRW and 3.3 billion KRW respectively.

The company is especially recognized as a strong player in the ethical drugs market.

Out of the total 183 approved items Korea Global Pharmaceutical has received so far, 173 are ETC products, with major items including cardiovascular, digestive system, and hyperlipidemia treatments. Additionally, it possesses a wide range of self-produced products such as psychiatric and central nervous system drugs, as well as the hyperlipidemia treatment Glostar tablets.

Kim Hayong, General CEO of KPS, stated, "The ethical drugs market accounts for 89% of the entire domestic pharmaceutical market," adding, "It is encouraging that we can enter the ethical drugs market through this pharmaceutical company acquisition." He further commented, "This will significantly contribute not only to KPS's future performance growth but also to the ongoing new drug development."

Meanwhile, KPS achieved consolidated sales of 92.1 billion KRW and an operating profit of 3 billion KRW last year, turning profitable. The company announced that its sales target for next year, following the pharmaceutical acquisition, is over 200 billion KRW.

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