Boryung (003850.KS) will carve out its prescription drug sales and marketing division into a new wholly owned subsidiary.
Boryung said its board approved the establishment of Boryung Pharma Solution, a company dedicated to prescription drug sales and marketing, at a meeting on Sept. 15. The new company is scheduled to be established in January as a wholly owned subsidiary, with Boryung holding a 100% stake, following a shareholders' meeting in October.
Under the plan, Boryung will handle manufacturing, research and development and space life science research infrastructure, while Boryung Pharma Solution will take charge of the commercial business. Ahead of its 70th anniversary next year, Boryung presented a new vision of becoming a "life science research infrastructure company." The company aims to develop manufacturing and R&D, commercial operations and space life science research into specialized infrastructure businesses, each with independent competitiveness.
Boryung also set a target of achieving a domestic market share of more than 10% through Boryung Pharma Solution. To that end, the company plans to diversify its portfolio by continuously bringing in blockbuster products from both home and abroad, in addition to its own products. The strategy is to build a virtuous cycle in which an expanded lineup strengthens sales and marketing capabilities, which in turn helps secure additional products.
Staff in the sales and marketing and management support divisions will move to the new company without changes to their working conditions. Boryung Pharma Solution said it will offer employees an industry-leading compensation system and various opportunities for growth. Boryung also plans to continue communicating with employees by strengthening internal communication through on-site briefings and other channels.
"We have no plans whatsoever for a sale or a separate listing, concerns that may be raised internally or externally," Boryung Chief Executive Kim Jung-kyun said. "As a wholly owned subsidiary in which Boryung holds a 100% stake, we will grow it together as a core growth pillar for Boryung."
