[Click eStock] "CGBio Medtech Expands Growth Drivers to ECM Skin Boosters"

On January 28, Hanyang Securities analyzed that CGBio Medtech is accelerating its transition into a comprehensive implant medical device company by expanding its business scope beyond orthopedic implants to include dental implants and ECM skin boosters. The company is undergoing a structural transformation by leveraging its manufacturing capabilities as a core competitive strength and increasing the proportion of ODM and OEM operations.

Lee Joonseok, a researcher at Hanyang Securities, explained, "CGBio Medtech is expanding its presence in the total implant sector by extending its business scope from orthopedic implant manufacturing references to the dental implant field." CGBio Medtech, a medical device manufacturer listed on KOSDAQ since 2015, is pursuing group-level portfolio diversification together with its largest shareholder, CGBio (which holds a 40.4% stake).

The company has secured a manufacturing base for key dental implant components through M&A, and has adopted a strategy of operating its own brand alongside OEM business. Lee stated, "In the highly competitive domestic dental implant market, the company has chosen an OEM manufacturing strategy that supplies components to hospitals and clinics using orthopedic implant systems, rather than focusing solely on its own brand." He added, "By combining sales of its own brand with OEM partnerships, the company is seeking to maximize profitability."

The company is also rapidly expanding its production infrastructure to support this strategy. The new Uijeongbu plant, currently under construction, is scheduled for completion in the first quarter of this year. Upon completion, annual production capacity will increase approximately threefold, from 200,000 units to 600,000 units. Lee noted, "By introducing automation and robotic processes, the company has established a system capable of both customized and mass production," and assessed that "this will enable the expansion of OEM supply to overseas customers beyond the domestic market in the future."

Meanwhile, another growth driver for CGBio Medtech is its ECM skin booster business. In this business, CGBio Medtech is responsible for production as part of the process of expanding 'CGBio Realoinject,' a joint soft tissue injectable developed by its parent company CGBio, into a product for cosmetic purposes. Lee emphasized, "The core competitive advantage of the ECM business is the stable procurement of raw materials based on human tissue," and added, "CGBio has obtained certification from the American Association of Tissue Banks (AATB) for two consecutive terms-the first in Korea to do so-demonstrating high reliability in terms of quality and safety for ECM products."

This year, CGBio Medtech secured its own production base by acquiring the Seongnam human tissue plant in the first quarter. Raw materials are supplied via CGBio, and distribution is handled by DNC Aesthetics, an affiliate of Daewoong Pharmaceutical, which also distributes Nabota botox. Lee explained, "By establishing a division of roles across production, raw material sourcing, and distribution, the company is mitigating initial business risks."

This year is expected to mark the first full-scale launch of both the dental implant and ECM businesses. Lee projected, "Building on last year's turnaround, the company is expected to achieve 65 billion won in sales and 6.9 billion won in operating profit this year."