South Korean pharmaceutical company Celltrion Inc. announced on Thursday that it is merging with its sales and marketing affiliate, Celltrion Healthcare Co. This is part of the company’s strategy to become a global drugmaker by optimizing its operational structure.
Celltrion stated that the combination of assets will enable them to make larger investments and increase their cost-effectiveness. It will also give them the opportunity to diversify their product pipeline by integrating their development, production, and sales functions, as well as improving transparency by simplifying their transaction structures.
The plan to join forces was first proposed by Celltrion’s founder and chairman, Seo Jung-jin, three years ago. At the time, the plan was to combine the three listed firms of the group – Celltrion, Celltrion Healthcare, and Celltrion Pharm Inc. However, the latter was not included in the most recent merger proposal.
Celltrion Holdings Co., the holding company of the Celltrion Group, is the biggest shareholder of both Celltrion and Celltrion Healthcare with 20.05 percent and 24.3 percent stakes respectively. This will remain unchanged after the merger.
The finalization of the process will take place at a shareholders meeting slated for October 23.