Lee Je-young, CEO of Bukwang Pharmaceutical, held an online conference call (investor briefing) on the afternoon of the 31st and stated, "We will secure 100 billion won through a capital increase to expand manufacturing facilities and acquire a new contract manufacturing organization (CMO) plant to significantly enhance our production capacity."
Earlier, Bukwang Pharmaceutical announced on the 28th that it had resolved to conduct a capital increase worth 100 billion won during a board meeting. On that day, CEO Lee prepared an opportunity to explain the purpose and future plans of the capital increase directly to institutional investors, analysts, and reporters.
CEO Lee noted, "We will prioritize investing the funds secured from the capital increase into manufacturing facilities to fundamentally resolve the frequent drug shortages faced by the company," adding, "Of the target fund of 100 billion won, approximately 49.5 billion won will be invested in factory and facility investments, 35 billion won in acquiring manufacturers, and the remaining 30 billion won will be invested in research and development (R&D)."
Bukwang Pharmaceutical, which was listed on the securities market in 1988, was acquired by chemical company OCI in 2022. OCI acquired 7,733,334 shares of Bukwang Pharmaceutical for a total of 146.1 billion won in February 2022, securing a 10.9% stake. At that time, 8 of the founding family members of Bukwang Pharmaceutical, excluding the eldest son of Chairman Kim Dong-yeon, former President Kim Sang-hoon, disposed of their entire holdings of 3,791,098 shares. CEO Lee, who previously served as the executive director of strategic planning at OCI Holdings, took office as the CEO of Bukwang Pharmaceutical in March 2024.
CEO Lee announced, "We will invest approximately 20 billion won from the secured funds to remodel the current Ansan plant." According to the company, the Bukwang Pharmaceutical Ansan plant has not undergone any expansions or remodeling since its establishment in 1985. CEO Lee stated, "Through the remodeling, we expect production to increase from the current 9.5 billion tablets to 13.5 billion tablets, an increase of about 40%," adding, "This will allow us to produce inventory that we were unable to sell due to production capability issues, which can lead to an increase in sales and operating profits."
Along with the acquisition of a new CMO plant, CEO Lee also revealed plans to enter the contract development and manufacturing organization (CDMO) business. He stated, "Funding for the remaining approximately 29.5 billion won will be finalized after comprehensively considering the circumstances of phase one factory facility investments and market conditions."
The company is reportedly reviewing the acquisition of about two or three factories with CMO capabilities. CEO Lee noted, "If we acquire the factories of a pharmaceutical company, we can take over all the approved items," stating that they plan to integrate Bukwang Pharmaceutical's R&D capabilities to eventually enter the contract development business for synthetic medicines.
After being acquired by OCI, Bukwang Pharmaceutical has streamlined over 50 pharmaceutical items and reorganized its product line to focus on central nervous system (CNS) medicines such as treatments for depression, insomnia, schizophrenia, and epilepsy. CEO Lee stated, "Our goal is to achieve sales of over 30 billion won in the CNS field within the next three years," adding, "We aim to be among the top 20 pharmaceutical companies by 2030."
This capital increase will be conducted as a general public offering after allocation to shareholders. The allocation of new shares will take place based on June 2, and the confirmed issuance price will be determined on July 3. Following a general subscription, the new share listing is expected to be completed on July 28.