Songdo Biocluster (Image courtesy of Incheon Free Economic Zone Authority)
SEOUL, Feb. 19 (Korea Bizwire) — South Korea’s pharmaceutical and biotech sector has kicked off 2024 with a flurry of merger and acquisition activity, as companies move to strengthen their market positions and diversify their portfolios.
GC Wellbeing, a subsidiary of GC Group, recently acquired Inibio, a developer of botox products, in a move to expand its aesthetic medicine business. The acquisition is expected to bolster the company’s presence in the botox and dermal filler markets.
In another significant deal, Vaxcell Bio, a developer of cancer immunotherapy treatments, merged with ALB Biotech last month. The company stated that the merger would allow it to diversify its cancer treatment pipeline by combining both companies’ drug development technologies.
HLB Life Science also joined the acquisition trend by purchasing Tiniko, a specialized manufacturer of superelastic nitinol materials. Nitinol, known for its high biocompatibility, is particularly suited for medical devices. HLB plans to expand its medical device business from its current focus on syringes to orthopedic medical products, including spinal implants.
The sector’s M&A activity has shown significant growth in recent years. According to the Korea National Enterprise for Clinical Trials, healthcare industry M&A transactions in 2023, including pharmaceuticals, life sciences, and healthcare, totaled approximately 18.4 trillion won across 203 deals, representing increases of 75% and 9% respectively compared to 2022.
Industry observers note that large-scale M&A deals exceeding 200 billion won have become more frequent since 2020, as companies seek to enhance their global competitiveness through expansion. Analysts suggest that companies are using M&A to diversify beyond their traditional prescription drug portfolios.
However, industry experts point out potential limitations to the sector’s M&A growth. Many South Korean pharmaceutical and biotech companies maintain owner-operated management structures rather than professional management, which may hinder larger deals common in international markets. The relatively low number of acquisitions involving foreign pharmaceutical and biotech companies with advanced technologies is also cited as a limitation.
Ashley Song (ashley@koreabizwire.com)
