Cellumed Reaches Final Settlement in Artificial Joint Lawsuit... Significantly Reduced Payment Eliminates Management Risk

Cellumed, a company specializing in bio-medical devices, announced on the 18th through a public disclosure that it has reached a final agreement to pay a total settlement of 16.5 billion KRW following ongoing negotiations with the creditor regarding the enforcement order for royalties and damages related to its artificial joint business, which was ruled on in March.

This amount represents a significant reduction from the original 24 billion KRW in damages awarded by the court. Cellumed expects that by paying only this amount within three months from the date of the agreement, it will be able to partially resolve its management risks.

This settlement is the result of several months of strategic negotiations by the company to resolve management uncertainties following the court ruling. The agreement was reached at a realistic level based on mutual understanding with the creditor.

The difference resulting from the adjustment of the settlement amount will be recognized as a reversal in the company's accounts, which is expected to contribute not only to the recovery of capital soundness but also to a substantial improvement in the capital impairment ratio. In particular, this measure is anticipated to play a decisive role in lifting the company's designation as an administrative issue, and is seen as a positive signal for future investment attraction and the restoration of external trust.

A Cellumed representative stated, "This settlement goes beyond simply resolving debt; it completely eliminates management risk and lays the foundation for full-scale growth and normalization of operations. Since the court ruling, we have thoroughly reviewed various options such as attracting investment and asset sales to reach an agreement with the creditor. Now that the settlement is finalized, we will proceed with the remaining schedule without delay and accelerate management stabilization."

The representative added, "We will use this settlement as a turning point to focus on Cellumed's core business capabilities and expand our operations. By dedicating ourselves to key medical device businesses such as bone grafts and skin grafts, we will focus on increasing sales and restoring profitability in the second half of the year. We are committed to rewarding our shareholders, who have trusted and waited for us, with tangible results and growth."

Meanwhile, Cellumed mainly produces orthopedic bone grafts such as 'Lafugen DBM' and dental bone grafts such as 'Lafugen Dental.' The company has recently begun to significantly enhance production efficiency through improvements in its manufacturing processes. Based on these efforts, Cellumed plans to achieve a full-fledged turnaround in performance in the second half of the year, along with increased related sales.

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