SEOUL, Aug. 17 (Korea Bizwire) — South Korea’s major pharmaceutical firm Cellltrion Inc. said Thursday it will merge with its sales and marketing affiliate Celltrion Healthcare Co. in a bid to become a global drugmaker by streamlining its key operational structure.
The company said in a regulatory filing that the merger is aimed at growing into a global big pharmaceutical firm with biosimilars and new drugs by “consolidating assets for large-scale investment.”
The integration will also help the company not only strengthen its cost competitiveness and diversify its pipeline by integrating its development, production and sales functions, but also enhance transparency by simplifying its transaction structures, Celltrion said.
The move came three years after Seo Jung-jin, its founder and chairman, mentioned a plan to integrate the group’s three listed firms — Celltrion, Celltrion Healthcare and Celltrion Pharm Inc.
But its chemical drugs-producing affiliate Celltrion Pharm was not included in the group’s latest merger plan.
Celltrion, listed on Seoul’s main KOSPI bourse, is a biosimilar manufacturing unit under Celltrion Group, represented by Celltrion Holdings Co., according to the company. The holding company owns a majority stake of 20.05 percent in Celltrion.
Celltrion Holdings is also the largest shareholder of the KOSDAQ-listed Celltrion Healthcare with a majority stake of 24.3 percent.
Celltrion said the holding company will remain as the biggest stockholder even after the merger with Celltrion Healthcare.
The merger will be finalized at a shareholders meeting slated for Oct. 23, the company said.