Boryung to launch Boryung Pharma Solution via physical division

Boryung has resolved to physically divide its prescription drug (ETC) sales and marketing division to establish a new 100% owned subsidiary, Boryung Pharma Solution. The split is scheduled to take effect on January 4, 2025, following a special resolution at a shareholders' meeting on October 28.

The restructuring aims to separate pharmaceutical manufacturing and R&D from commercial operations to enhance decision-making speed and professional expertise. While the parent company, Boryung, will remain a listed entity focusing on manufacturing and research, the new Boryung Pharma Solution will operate as an unlisted entity specializing in drug sales and distribution.

Boryung Pharma Solution is expected to launch with assets of approximately 57 billion KRW and liabilities of 13.3 billion KRW. The company intends to expand its portfolio by introducing domestic and international blockbuster drugs, targeting a domestic market share of over 10%. CEO Kim Jung-kyun stated there are no plans for a sale or a separate listing for the subsidiary, and the company has committed to not applying for an IPO within the next five years to minimize concerns regarding shareholder value dilution.