EVE Advanced Materials Expands Bio Business by Acquiring Cellontec through SC Engineering

EV Advanced Materials (CEO Choi Dong-rak) announced on the 29th that it will acquire 25 billion KRW of the 12th convertible bonds of SCN Engineering (CEO Kim Geon-woo).

A company official stated, "The purpose of acquiring 25 billion KRW disclosed this time is to invest in related equipment at the factory of Cellontech, a regenerative medicine specialized company, and plans to utilize the Namyangju factory as a biopharmaceutical production base in the future," adding, "We will expand production capacity (CAPA) through stable equity acquisition and investment in factory facilities and equipment."

Cellontech's independently developed bio-collagen is a medical collagen registered in the U.S. Food and Drug Administration (FDA) Drug Master File (DMF) as an active pharmaceutical ingredient, serving as a high value-added core raw material that helps regenerate various damaged human tissues. The company explained that it is the main component constituting the surface layer (perichondrium) of articular cartilage tissue itself.

Through Cellontech's manufacturing technology and production process, the technology and quality that maintain the unique properties and structure of collagen existing in the body are competitive advantages. The company has secured 18 global patents in the U.S., Europe, China, Japan, and other countries, and has accumulated clinical results published in more than 20 domestic and international professional journals.

In particular, Cellontech's aggressive efforts to expand domestic and international sales channels for intra-articular injection 'CartiZol', a unique bio-collagen raw material-based product, the cosmetic filler 'TeraFill', and the tendon and ligament reconstruction product 'RegenSeal' are showing visible results.

Through this, Cellontech has rapidly expanded its growth by conducting joint marketing of CartiZol with leading domestic pharmaceutical companies such as LG Chem, Dongkook Pharmaceutical, and Kolon Pharmaceutical. Overseas, it has also secured a minimum order quantity (MOQ) worth 120 billion KRW by signing supply contracts with six companies in three countries, including Sahuan Pharmaceutical in China, over the past year. Sahuan Pharmaceutical is a partner company of Hugel.

LG Chem has continuously developed and launched various osteoarthritis treatments such as 'Hiruan Injection', 'Hiruan Plus Injection', and 'Synovian Injection' since 1997, establishing a solid nationwide distribution network. Through an agreement with Dongkook Pharmaceutical, Cellontech is responsible for the approval and production of knee intra-articular collagen injections, while Dongkook Pharmaceutical handles sales.

Dongkook Pharmaceutical launched the Atebon series (Atebon L, Atebon First, Atebon) produced by Cellontech starting in July, further expanding its market share in the musculoskeletal system, which had been increased through hyaluronic acid intra-articular injections such as Hyalon First and Hyalon Prefilled.

Through a joint marketing agreement with Kolon Pharmaceutical, the two companies are cooperating to expand sales of CartiZol in the domestic osteoarthritis treatment market. Cellontech will supply Kolon Pharmaceutical with two of the four CartiZol treatment options: 'CartiZol Active (3-dose formulation)' and 'CartiZol Prime (5-dose formulation)'. Kolon Pharmaceutical has launched CartiZol under the new product name 'Carticure' series.

Accordingly, Cellontech's sales have steadily grown over the past three years, from 7.23 billion KRW in 2021 to 14.15 billion KRW in 2022, and 14.78 billion KRW in 2023, achieving approximately 13 billion KRW in sales as of September 2024.