[Press release] Bioplus, application of biomaterials and creation of new growth engines for bio-industry

By 2021년 September 9일September 28th, 2021No Comments

Published date: September 09, 2021

BioPlus (CEO Jung Hyun-kyu) explained the company’s major businesses and competitiveness through an online press conference on the 8th and revealed future strategies and visions for listing on the KOSDAQ.

“Based on the world’s only source technology, MDM Tech platform technology and next-generation bio-products, we have set up a specific growth strategy by discovering future food and creating new growth engines”, said Jung Hyun-kyu, CEO of BioPlus.

BioPlus was established in 2003 as a company specializing in medical devices and bio-products based on polymeric biomaterials. Currently, the main products are Dermal Filler, a cosmetic cosmetic product, anti-adhesion drugs in the medical device field, and joint tissue repair materials, and MDM Tech is applied to develop new bio-material applications such as bladder tissue repair, bio-breast, and bio- cartilage replacements. It is also focusing its capabilities on bio businesses such as next-generation new concepts such as botulinum toxin and diet injections (improved obesity treatments).

The company plans to further strengthen its existing flagship businesses and quickly expand its global market based on its original technology competitiveness in the ▲ Hyaluronic acid (HA) application platform technology ▲ growth potential by fostering bio businesses ▲ high growth potential.

■ Has core competitive MDM Tech platform technology…High profitability and scalability strengths

BioPlus’s core competitiveness is “MDM Tech,” an independently developed platform patent technology, which maximizes functions and quality such as viscoelasticity, safety, persistence, molding power, biocompatibility, and biodegradability of biomaterial applications. Based on this technology, the company has a lineup of products such as Dermal Filler, anti-adhesion drugs, and joint tissue restoration materials, and is also focusing on developing new products such as bladder tissue restoration, bio-breast, and bio- cartilage replacement.

Currently, hyaluronic acid-based dermal fillers and anti-adhesion drugs continue to grow rapidly due to their differentiation and excellence, and have a high operating margin of more than 50% due to the implementation of quality-based marketing strategies.

In addition, BioPlus has maintained an average annual sales growth of 79% over the past five years, proving the marketability and profitability of its flagship businesses, and the firm’s solid performance is a solid foundation for strategic investment and fostering in new and new markets.

■ Creating new growth engines by fostering bio-businesses such as botulinum toxin and diet injections.

In addition to bio-material applications, BioPlus is striving to create new growth engines by discovering bio-business as the company’s future food. Bio-products currently undergoing research and development include next-generation new concepts such as botulinum toxin and diet injections (improved obesity treatments).

First of all, the company is pushing for the development of next-generation botulinum toxin through joint management and acquisition of shares in a company that holds a legal botulinum toxin strain. The global market for botulinum toxin is worth 4 trillion won, and the disadvantage of existing products is that their durability weakens due to resistance. BioPlus aims to develop and release Bio Better, which improves the sustainability limit of existing products by combining protein half-life control technology.

The company is also pursuing research and development of GLP-1-based diet injections through technical alliances with specialized bio companies related to protein half-life control. GLP-1 is a peptide substance that shows excellent blood sugar control and weight loss effects, and is in the spotlight as a treatment for diabetes and obesity. BioPlus is a strategy to expand the company’s future growth engine by developing a next-generation diet injection that improves the existing GLP-1 obesity treatment.

■ Accelerate global market expansion by establishing a complex platform for cosmetic surgery in Hainan district.

As BioPlus has already been recognized for its product competitiveness in the global market beyond Korea, most of its sales are currently occurring overseas, including China, Japan, Europe and Russia, Southeast Asia, and the Middle East. In order to further strengthen global market competitiveness and sales power, the company has completed the establishment of a joint venture in China’s Hainan Free Trade Zone and is pushing to build a beauty plastic complex platform covering R&D centers, production bases, and well-being beauty franchise hospitals.

Last year, the Chinese government announced a business plan to develop Hainan as the world’s largest free trade port, and BioPlus was the only one in Korea to enter the “Hainan Free Trade Port Focus Project.” Through this, the company plans to maximize its appearance and profitability by further increasing overseas sales such as China, Hong Kong, and Southeast Asia.

In addition, the company has already established an Indian corporation and a Dubai branch, and plans to secure direct management bases in three countries, Indonesia, Thailand, and Vietnam, and establish corporations or branches in Japan and Europe in the future. The plan is to expand domestic sales not only overseas but also in Korea by establishing a sales organization.

■ New product R&D and facility investment expansion through IPO contest.

The total number of public offering shares of BioPlus is 1,400,000, which is 100% new. The estimated public offering price per share ranges from 28,500 won to 31,500 won, and the company plans to raise about 44.1 billion won based on the top of the band through this public offering. Kiwoom Securities was in charge of the listing.

The public offering funds are used for research and development of new products, facility investment, and operating funds. In particular, it plans to expand investments in R&D such as ▲ biological breast, biological cartilage replacement, and next-generation botulinum toxin, as well as clinical ▲ expansion of production facilities ▲ sales and marketing to expand domestic and foreign markets.

The company will conduct demand forecasts for institutional investors on the 8th and 9th to determine the final public offering price on the 10th and receive general subscriptions on the 13th and 14th. It is scheduled to be listed at the end of September, and the market capitalization after listing is between 396.6 billion won and 438.3 billion won based on the expected public offering price.

Meanwhile, BioPlus’s consolidated performance last year (2020) was 24.3 billion won in sales, 12.3 billion won in operating profit, and 9.7 billion won in net profit. Sales rose 43.2% year-on-year (2019), while operating profit and net profit rose 79.0% and 72.6%, respectively. As of the first half of this year, sales amounted to 18.2 billion won and operating profit amounted to 10 billion won, recording a high operating profit ratio of 55%.


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