Uridul Hubrain Expands Orthopedic Medical Device Market... "Confident in Operating Profit Surplus"

[Asia Economy Reporter Hyunseok Yoo] Wooridle Hubrain announced on the 11th that it will acquire pharmaceutical and medical device distribution specialists ‘H Bio & Company’ and ‘J&S Pharm’. The acquisition amounts are 15.5 billion KRW and 8 billion KRW respectively, with a 100% stake acquired in both companies.

H Bio & Company supplies implants and medical consumables mainly to large domestic hospitals that have introduced the Mako robotic system for artificial joint surgery. Implants refer to knee and spinal artificial joints. J&S Pharm sells pharmaceuticals to hospitals, pharmacies, and pharmaceutical wholesalers.

Through this acquisition, Wooridle Hubrain plans to leap forward as a comprehensive medical-centered company by building a professional and systematic supply infrastructure based on its experience and network in pharmaceutical distribution. Until now, the company has supplied obesity-related pharmaceuticals to hospitals and pharmacies.

A Wooridle Hubrain official said, "With the entry into a super-aged society, demand for orthopedics related to bones such as the spine and pelvis is increasing," adding, "As prostheses and artificial joints that replace bone and joint functions are continuously developed, sales of specialized distribution companies are increasing."

He continued, "The orthopedic medical device market is expanding due to an increase in neck disc diseases such as forward head posture caused by frequent smartphone use," emphasizing, "We will create synergy with existing businesses by acquiring an orthopedic specialized distribution company."

‘H Bio & Company’ and ‘J&S Pharm’ have maintained an average annual sales growth rate of over 50% and double-digit operating profit growth over the past two years. Last year, H Bio & Company and J&S Pharm recorded sales of 7.5 billion KRW and 12.6 billion KRW, and operating profits of 1.5 billion KRW and 1.7 billion KRW, respectively.

Wooridle Hubrain recorded sales of 27.6 billion KRW and an operating loss of 2.4 billion KRW last year. The company expects the acquisition to be favorable for turning operating profit positive.

The official said, "By making bulk purchases with Wooridle Hubrain’s financial strength, profit margins will improve through cost reduction," adding, "We will strive to expand our client base by cooperating with the existing pharmaceutical distribution network." He also added, "We will establish a transparent distribution structure and build a systematic supply system to advance the domestic medical distribution market."