[Asia Economy Reporter Lim Jeong-su] Selma Therapeutics announced on the 15th that it will begin due diligence for the acquisition (M&A) of Songjeong Yakpum, a pharmaceutical distribution specialist company.
Songjeong Yakpum is a pharmaceutical distribution company specializing in antiviral agents, established in 2008. It is considered a strong company with annual sales exceeding 27 billion KRW on average over the past five years. It is known to have grown rapidly after winning a competitive bid from the Public Procurement Service related to Japanese encephalitis in 2009. The company supplies tetanus-diphtheria vaccines to military units after winning a bid from the Defense Acquisition Program Administration, and also supplies influenza vaccines and hepatitis A/B vaccines to public health centers nationwide and over 600 hospitals and clinics.
Yoon Byung-hak, chairman of Selma Therapeutics, explained, "We decided to pursue the acquisition of Songjeong Yakpum to secure a distribution network early in the process of developing a COVID-19 treatment." He added, "Songjeong Yakpum has hundreds of sales networks nationwide and understands the characteristics of the domestic pharmaceutical and related distribution markets very well. In particular, it has strengths in the distribution of antiviral agents, which will create great synergy for Selma Therapeutics' future sales expansion."
Meanwhile, Selma Therapeutics plans to start due diligence with an accounting firm from the 15th and complete the final acquisition procedures within this month.
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