Polaris Office Group Acquires Active Pharmaceutical Ingredient Manufacturer Estec Pharma... Seeking AI Convergence Synergy

Polaris Office Group is acquiring Estec Pharma, a company specializing in the manufacturing of active pharmaceutical ingredients (APIs).

Polaris Office Group announced on the 4th that through Polaris Office, Polaris AI (formerly Linos), Polaris Sewon, and Polaris Uno, it will acquire a 20.0% stake held by the existing largest shareholder Kim Jae-cheol and one other person for approximately 40 billion KRW. Additionally, the group will participate in Estec Pharma’s third-party allotment paid-in capital increase with a total investment of about 5.1 billion KRW.

Based on provisional results from last year, Estec Pharma is considered an undervalued company with high financial stability, recording a debt ratio of about 5% and an operating profit of 5.3 billion KRW. The company owns a c-GMP certified factory in Hwaseong and produces over 60 types of active pharmaceutical ingredients.

In particular, the company continues to grow its sales by exporting high value-added CMO (Contract Manufacturing Organization) products and asthma treatments (PLK) to Japan. It also maintains cooperative relationships with promising startups and bio ventures to integrate the fine chemical-based API industry with the bio industry.

Recently, Estec Pharma registered Roxatidine as an active pharmaceutical ingredient with the National Medical Products Administration (NMPA) of China. This marks the first case of a domestic peptic ulcer treatment API entering the Chinese API market, aiming to expand its global network and increase exports.

Following the acquisition, the company plans to strengthen its existing business in the short term and integrate AI (artificial intelligence) into the pharmaceutical industry in the mid to long term. To improve research and development (R&D) efficiency, researchers will be replaced by AI, applying it from synthetic new drug development to API research.

A representative of Polaris Office Group stated, “By newly incorporating a financially sound API manufacturing company into our group, we have diversified our business portfolio. Based on a stable growth foundation, we will continue to select and invest in companies that combine future growth potential with solid fundamentals.”

They added, “Just as Polaris Office has led the AI field with the technology accumulated over the past 27 years, we will establish a long-term growth strategy to enhance shareholder value.”