This photo, provided by South Korea’s biotech company GC Pharma shows a researcher checking an equipment at its plant in Cheongju, 150 kilometers south of Seoul, that produces its plasma therapy treatment, GC5131A.
SEOUL, Feb. 28 (Korea Bizwire) — South Korea’s food companies are launching into the pharmaceutical and biotech industries as part of efforts to ensure sustainable business growth.
Dongwon Industries Co. has signed an initial agreement with Boryung Partners last week over its possible takeover of Boryung Biopharma Co.
Under the memorandum of understanding, the canned tuna maker is set to conduct due diligence on vaccine maker Boryung Biopharma and receive preferred negotiation rights, depending on the outcome of the due diligence.
Boryung Partners holds over 60 percent stake in Boryung Biopharma, which developed the first oral typhoid vaccine in South Korea.
Confectionary maker Orion Corp. set up a joint venture with China’s state-run pharmaceutical firm Shandong Lukang Pharmaceutical Co.
It also signed a deal with Quratis to jointly develop a tuberculosis vaccine in February last year.
Orion Biologics, which was established in December, introduced dental disease treatment technologies from local biotech company HysensBio and carries out product development and clinical licensing.
Meanwhile, food giant CJ Cheiljedang Corp. plans to strengthen its efforts to develop new ventures for the future including polyhydroxyalkanoate (PHA) as well as to secure new growth engines such as nutrition products and alternative proteins.
CJ Cheiljedang’s biotech business generated revenue of more than 4.85 trillion won (US$3.69 billion) last year, up 30.1 percent year on year, with an operating profit of 636.7 billion won, up 34.5 percent year on year.
This figure was higher than the operating profit it achieved from its core food business.
J. S. Shin (js_shin@koreabizwire.com)
