Sewon Cellontech to Spin Off Bio Division... "Strengthening Next-Generation Growth Engine in Regenerative Medicine Business"

[Asia Economy Reporter Yoo Hyun-seok] Sewon Cellontech announced on the 8th that it will spin off its bio business division (hereinafter RMS Division), which develops and manufactures cell therapies and bio-collagen, to strengthen its global competitiveness.

On the 5th, Sewon Cellontech held a board meeting and decided to spin off the RMS Division, according to a public disclosure. The spin-off date is set for the 31st of this month. Once the spin-off is completed, the RMS Division will become a 100% subsidiary of Sewon Cellontech (the surviving company name after the spin-off: Sewon ENC) under the newly established company name Cellontech.

A company official stated, "Since we have been simultaneously operating businesses producing chemical plant equipment and pneumatic equipment, which are mutually heterogeneous, along with regenerative medicine business, rapid decision-making has been difficult and there have been restrictions on attracting external investment, limiting the RMS Division’s establishment as a core growth engine. Through the spin-off, we plan to solidify the expertise, independence, and identity of the regenerative medicine business and actively expand investment."

The RMS Division, which will become the newly established company, operates in cell therapies, bio-collagen-based biomaterials, and cord blood storage business. In the cell therapy field, it developed Korea’s first two cell therapy products and a cord blood storage system. In the biomaterials field, it completed commercialization of nine products based on independently developed bio-collagen raw materials. Among them, ‘Chondron,’ which succeeded in commercialization as the world’s second product, is a cell therapy for articular cartilage damage recognized as a new medical technology by the Ministry of Health and Welfare and is also covered by expanded health insurance benefits.

Sewon Cellontech is smoothly advancing a project to expand stable mass production infrastructure through the ‘RMS CAMP’ currently under construction in Geumgok General Industrial Complex (located in Namyangju, Gyeonggi Province). Based on the ‘RMS CAMP,’ scheduled for completion in 2022, a proactive response system is being established to meet the growing global demand for products whose safety and efficacy have already been thoroughly verified, and domestic and international sales growth is expected to accelerate.

A company official emphasized, "With government policies fostering the bio-health industry as the next-generation growth engine, we will continue efforts to upgrade systems and invest in technology to expand the global market, firmly establish global technological leadership contributing to lifelong human health, and focus on achieving results to lead the global regenerative medicine and biomaterials market."

Meanwhile, Sewon Cellontech’s existing core businesses of chemical plant equipment and pneumatic equipment will proceed smoothly through active collaboration with its parent company SC Engineering. Regarding this, a company official explained, "From this year, with increased investment in energy facilities such as LNG charging stations and hydrogen charging stations, an expansion in supply volume of key products such as reactors, pressure vessels, heat exchangers, and hydraulic equipment is expected."