Polaris AI Pharma Issues 10 Billion Won CB to Institutions...Accelerates Growth Investment

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Polaris AI Pharma, a company specializing in Active Pharmaceutical Ingredients (API) and Contract Development and Manufacturing Organization (CDMO) services, is accelerating its growth investment by issuing convertible bonds (CB) worth 10 billion won to institutional investors.

On March 18, Polaris AI Pharma announced through a public disclosure that it has decided to issue its 7th unsecured, unguaranteed, bearer CB through a private placement. The company explained that this fundraising is a proactive investment aimed at future business expansion and will serve as a key resource for executing its mid- to long-term growth strategy.

This CB issuance is considered significant as it comes at a time when the company’s operating profit has recently surged, leading to a rapid improvement in profitability. Analysts note that a structure which simultaneously pursues growth investment based on a stable profit foundation is now taking shape in earnest.

The funds raised will be focused on the localization of APIs, advancement of CDMO processes, and improvement of production efficiency. Through these measures, the company aims to strengthen its competitiveness and expand its market share amid the ongoing restructuring of global supply chains.

In particular, API localization is highlighted as a core strategy that can both reduce external dependency and improve profitability. With this investment, the company plans to further enhance the internalization of APIs, thereby securing both business stability and growth potential.

The CDMO business is also entering a full-fledged expansion phase. Polaris AI Pharma plans to strengthen its position in the rapidly growing CDMO market by optimizing processes and enhancing production competitiveness.

Industry insiders have commented that the CB issuance has established a foundation for additional growth investment, as the company’s financial strength has improved thanks to increased operating profit.

Additionally, Polaris AI Pharma plans to apply the pharmaceutical AI solution ‘AskDoc for Pharma’, which it is developing together with its parent company Polaris Office, to its manufacturing processes to simultaneously enhance productivity and quality competitiveness. Through this, the company aims to lead the digital transformation of the pharmaceutical manufacturing sector.

A representative of Polaris AI Pharma stated, “This 10 billion won CB issuance is not merely a fundraising activity, but a strategic investment foundation for entering a full-fledged growth phase,” adding, “We will demonstrate a significant leap forward through API localization and CDMO business expansion.”

The representative further commented, “As both profitability improvement and growth investment progress simultaneously, the company’s potential for value appreciation will become even greater.”

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