[Announcement+] BrainContents Acquires 'Mediphrondivity'... "Diversifying Business Portfolio"

[Asia Economy Reporter Hyunseok Yoo] Brain Contents has diversified its business by acquiring Mediphron Divity, a new drug development bio company.

On the 21st, Brain Contents signed a stock and management rights transfer agreement to acquire 357,300 shares held by Jung Minhwan, the largest shareholder of Mediphron, for 4.5 billion KRW. It also announced that it will participate in a paid-in capital increase by investing 11 billion KRW together with its subsidiary Global Tax Free. After the payment of the paid-in capital increase, the shareholding ratio including related parties is 9.93%.

Mediphron is a bio venture company established in 1997 by professors from Seoul National University, KAIST, and other universities, and was listed on the KOSDAQ market in 2003. Its main pipelines are Alzheimer’s disease treatments and non-narcotic analgesics.

Brain Contents plans to secure bio research personnel and technological capabilities through this acquisition to promote business diversification. The company stated that it plans to review synergies with subsidiaries, including the clinical progress of pipelines currently held by Mediphron, securing additional pipelines, and developing new natural materials.

Brain Contents, which operates a cosmetics business through its subsidiary Swanicoco, will be able to further strengthen the position of Swanicoco, the number one natural bio cosmetics company, by developing basic new materials for cosmetics and natural raw materials based on Mediphron’s R&D technological capabilities.

In fact, many bio and pharmaceutical companies are entering the cosmeceutical (a combination of cosmetics and pharmaceuticals) market by utilizing drug production technology and raw materials. Compared to new drug development, it has lower risk and higher return on investment, allowing companies to expand their scale and secure cash cows.

Kang Jinwon, CEO of Brain Contents, said, “Based on Mediphron’s stable financial structure, we will carefully review synergies between subsidiaries and affiliates to improve performance together,” adding, “We plan to transform it into a bio company with fundamentals, not a bio company that incurs losses every year, to enhance corporate value.”