Aesthetic corporation PharmaResearch has been shaken by rumors of a spin-off of its healthcare business. Concerns have arisen that PharmaResearch's flagship products, such as the cosmetic medical device Rejuran, could move to a newly established corporation, 'PharmaResearch Medicare.' As existing shareholders' worries grow that this could mean a partitioning of the core business, the stock price temporarily plummeted. However, PharmaResearch denied this, saying it has not reviewed any partitioning or separation and re-listing of the Rejuran business.
On the 19th, PharmaResearch's closing price fell 3.74% ($11) from the previous day, recording 283,500 won. At one point during trading, it dropped by more than 7%. This was influenced by a report from a media outlet that PharmaResearch is considering a plan to spin off its healthcare business as a 100% subsidiary. In particular, speculation arose that the flagship product line could move to the new corporation, causing the stock price to fluctuate.
It is true that PharmaResearch established a new corporation. According to the verification of the corporate registration, a corporation named 'PharmaResearch Medicare' was established on December 19th last year. This company is located at 62, 255beon-gil, Pangyo, Bundang-gu, Seongnam-si, Gyeonggi Province, on the 8th floor, with a capital size of 10 billion won. PharmaResearch's headquarters is also located at 62, 255beon-gil, Pangyo, Bundang-gu, Seongnam-si, Gyeonggi Province. PharmaResearch Medicare's business purposes are listed as ▲ sales of pharmaceuticals, quasi-drugs, medical devices, and medical supplies ▲ sales of other chemical products ▲ sales of cosmetics ▲ sales of beauty and personal care products ▲ sales of health functional foods and food.
PharmaResearch, a biopharmaceutical company based on regenerative medicine, has notable product lines such as Rejuran, a medical device for skin regeneration and beauty, and Conjuran, an intra-articular injection used for joint treatment. In particular, Rejuran, well-known as a 'skin booster,' has steadily gained popularity in the beauty market and is driving PharmaResearch's performance. Last year, PharmaResearch's revenue increased by 34% year-on-year to 349.6 billion won, and its operating profit rose by 36.5% to 125.9 billion won.
If the core business, Rejuran, moves to PharmaResearch Medicare, it could lead to outcomes like the partitioning of core business, which recent stock market investors are most fearful of. If the core business is partitioned, the current company remains as a parent company, which could decrease corporate value.
However, PharmaResearch denied the report. A PharmaResearch official issued a statement in the afternoon, saying, 'We have not reviewed any partitioning or separation and re-listing of the Rejuran business.'
They also noted, 'The aesthetic sector, including Rejuran, is rapidly being listed, and we are focusing on that situation.' They added that they have considered establishing a sales-focused subsidiary and entering into a consignment sales contract for the efficient decision-making and operations of the pharmaceutical and Conjuran-related non-aesthetic sectors. However, they stated that they have not reviewed the sale or re-listing of the subsidiary. Additionally, they mentioned, 'Even if sales in the non-aesthetic sector are consigned to the subsidiary, it is expected to operate with minimal revenue structure, thus the decrease in separate sales is not expected to be significant.'