Published date: September 23, 2021
[Jung Hyunkyu, CEO of BioPlus] “Entering the market for biological medicine in the existing HA platform-based business”.
Listed on the KOSDAQ market on the 27th…Competition rate for subscription for public offering stocks: 1206.63:1″ is successful.
Construction of the biological manufacturing complex next year…[Goal to complete GMP approval in 2023]
▲ Jeong Hyun Kyu, CEO of BioPlus./ Photo = Money Today
BioPlus, which was considered a quiet powerhouse in the field of hyaluronic acid (HA) fillers, is trying to leap into a bio company that encompasses treatments through listing on the stock market.
“The company is currently recognized only as a company specializing in processing biomaterials, and we plan to switch to a comprehensive bio company that encompasses biological agents such as diabetes and obesity treatments, improved botulinum toxin, and virus treatments,” said Jeong Hyun-kyu, CEO of BioPlus Seoul Business Center in Songpa-gu, Seoul.
BioPlus, which is set to be listed on the KOSDAQ market on the 27th of this month, was established in 2003 and is a company that focuses on biomaterials such as hyaluronic acid fillers and anti-adhesion drugs. From the beginning of its establishment, it recorded 24.3 billion won in sales and 12.3 billion won in operating profit last year through strategies aimed at overseas markets. Sales have grown rapidly over the past five years with an annual average increase of 79%.
The operating profit ratio, which recorded 50.6% last year from 36% in 2018, is expected to soar to 55% this year. This is a prominent part in comparison with other bio companies that rely only on the potential of pipelines (new drug candidates) under development without a proper sales base even after listing. This strength was found to be a high competition rate of 1206.63 to 1 in public offering stock subscriptions held from the 13th to the 14th of this month.
CEO Jeong Hyun-kyu said, “The background was that we were fully prepared and listed, including technology and products as well as sales flow.” As of the first half of the year, the strength of BioPlus, which consists of 85% of total sales consisting of fillers, is considered “MDM Tech,” a source platform technology. As a technology specialized in processing, it has been injected into the body to maintain its shape, enhancing safety, persistence, and viscoelasticity. While maintaining its shape, it has been safely decomposed in the body 100% over time, differentiating itself from competitors such as Galderma, Allergan, Hugel, and LG Chem. By developing it into a source technology that processes all biomaterials beyond fillers, it is also developing new products such as biological breasts and biological cartilage replacements.
CEO Jeong, who came up with the idea and name of the technology, is preparing to become a comprehensive bio company that develops treatments from biomaterial-oriented companies through funds secured by listing. In the bio-material sector, which used to be in charge of the central axis, the company plans to balance its weight with anti-adhesion drugs, injection cosmetics, and joint tissue restoration, and take another central axis.
CEO Jeong said, “In the case of virus treatments, meaningful technologies have been secured in the field of shingles, which is the main focus, and COVID-19 treatments, which are considered pending issues, are also being jointly developed.”
The construction of an outpost for the full-fledged biological drug business is also underway. Construction will begin in the first quarter of next year after completing the contract for the site of a production complex of more than 10,000 pyeong by the end of this year. The goal is to complete procedures such as GMP approval by the end of 2023. The complex, which will house production facilities in the field of biological agents mentioned earlier by CEO Jeong, plans to be used not only for its own items but also for CMO projects that entrust and produce pipelines of domestic bio-ventures.
CEO Jeong said, “We plan to invest 100 billion won first in the production complex, which will invest a total of 200 billion won, including 45 billion won in cash secured through the public offering,” adding, “As the new project is in line with the construction of the production complex, some items are expected to be commercialized from 2024.
CEO Jeong is also paying attention to China’s business, which is considered a “land of opportunities” in the beauty market. To this end, BioPlus, which participated in the Hainan Free Trade Port development project, has completed the establishment of a local corporation and is preparing for filler, aesthetic, and therapeutic biomaterial projects through franchising beauty plastic surgery hospitals. Taking advantage of the regional characteristics of free trade ports, the plan is to target emerging countries such as Thailand, Vietnam, and Indonesia as well as China.
He said, “There are concerns about entering various areas, but it is clear that we will enter a marketable business with the aim of maintaining an operating margin of more than 50% even if the appearance grows,” adding, “Moderna, a bio-venture, will become a global bio-group based on its skills.”