PharmaResearch (214450.KQ) is moving to strengthen its capabilities in the North American market by acquiring a U.S. cosmetics manufacturer. The move is a strategy to build a stable supply system in the United States for its own cosmetics brand, "Rejuran Cosmetic."
PharmaResearch said Monday that it signed an agreement Sunday to acquire Cosmetic Group USA (CG USA), a local cosmetics original equipment manufacturing (OEM) and original development manufacturing (ODM) company.
The size of the deal will not be disclosed under an agreement between the two companies. However, given that no separate regulatory filing was made, the investment is estimated to be around 30 billion won. Typically, a listed company's investment in another entity triggers a disclosure obligation when it exceeds 5% of the investing party's equity capital. PharmaResearch's equity capital stood at 723.9 billion won as of the end of last year, putting the disclosure threshold at about 36.2 billion won.
CG USA is a cosmetics manufacturer with a production facility in California. Along with a cosmetics manufacturing license, it holds a U.S. Food and Drug Administration (FDA)-registered facility and a quality control system compliant with current good manufacturing practice (cGMP) standards, giving it manufacturing infrastructure capable of producing over-the-counter (OTC) drugs.
PharmaResearch plans to strengthen its supply stability in the North American market through the CG USA acquisition. The company has until now supplied products manufactured in Korea to the U.S. market, but securing a local supply chain will enhance its market responsiveness. It also plans to fully pursue a localization strategy in the Americas to expand into North and South American markets, including Canada.
Rejuran Cosmetic is a premium derma cosmetic brand based on PharmaResearch's regenerative medicine technology. It is expanding its business in the U.S. market based on its core ingredient, "DOT® c-PDRN." The brand is strengthening its online and offline distribution networks centered on Sephora and Amazon, and is scheduled to enter the Canadian market in the second half of the year.
"Through this acquisition, we have secured a local production base to support our expansion in the North American market," PharmaResearch CEO Son Ji-hoon said. "It is significant in that we now have the foundation to broaden our production areas, including expanding our ODM business in the U.S. and extending into the over-the-counter drug sector."
