Kolmar Holdings (024720) is set to strengthen its biopharmaceutical research and development capabilities following its acquisition of preclinical research firm Woojung Bio (215380). The deal positions the group to accelerate new drug development by securing infrastructure spanning from candidate discovery through preclinical testing.
According to pharmaceutical industry sources on May 5, Kolmar Holdings has agreed to acquire 35 billion won ($24.5 million) in convertible bonds recently issued by Woojung Bio. Full conversion would give Kolmar a 47.22% stake, making it the largest shareholder and effectively securing management control.
Founded in 1989, Woojung Bio provides laboratory animal-based preclinical research and testing services. Its core business operates as a contract research organization (CRO) conducting toxicity assessments and efficacy verification through animal testing for drug candidates.
The company is known for maintaining infected animal research facilities capable of handling high-risk pathogen experiments required for infectious disease research. Its infrastructure for conducting mandatory toxicity and efficacy evaluations during drug development is considered a key strength. New drug development proceeds from candidate screening through preclinical research and clinical trials before commercialization, with animal testing infrastructure viewed as critical to research speed and efficiency.
Analysts say the investment brings preclinical research capabilities—the stage following candidate discovery—in-house for Kolmar Group. Combined with existing pharmaceutical operations, this could enable construction of an integrated bio platform from early R&D through commercialization.
Potential R&D synergies with HK inno.N, Kolmar Group's pharmaceutical affiliate, are drawing particular attention. HK inno.N holds various prescription drugs and drug candidates including K-CAB, a treatment for gastroesophageal reflux disease. Industry observers suggest Woojung Bio's preclinical infrastructure could enhance research efficiency in developing HK inno.N's new drug pipeline.
Additional synergies are expected from the "Woojung Bio New Drug Cluster" the company operates at its Dongtan, Gyeonggi Province facilities, which provides laboratory space to startups and research institutions. The open research infrastructure sharing laboratories and equipment supports R&D activities for biotech companies.
Kolmar Group is expected to leverage this research infrastructure to expand collaboration with bio startups. Early-stage biotech firms using the research space and preclinical testing services could create opportunities for technology partnerships and joint research.
However, Woojung Bio's financial situation remains a challenge. The company has recorded operating losses in recent years, increasing its financial burden. After achieving profitability in 2024, it returned to losses within a year. A portion of funds raised through the convertible bond issuance will be used for debt repayment.
Kolmar Holdings' investment is expected to bring management changes. Woojung Bio's current executives plan to resign citing responsibility for poor performance, with board composition and management strategy likely to be reorganized around Kolmar Holdings.
Industry observers view this transaction as a catalyst for Kolmar Group—previously centered on cosmetics and pharmaceutical ODM (Original Development Manufacturing)—to expand its bio business by securing R&D infrastructure. Expectations are rising that drug development efficiency will improve with research capabilities now spanning from candidate stage through animal testing-based preclinical research.
"Animal testing infrastructure is essential in preclinical research," said a pharmaceutical industry official. "Securing both research facilities and CRO functions simultaneously could accelerate research and create a platform for collaborating with various biotech companies."
