Daewoong announced that its affiliate CGBIO has established a joint venture, 'Lietian Biotechnology Co., Ltd.', with Shanghai Sunyu Medical in China to make a full-scale entry into the Chinese regenerative medicine market on the 9th.
Shanghai Sunyu Medical is a Chinese orthopedic medical device company listed on the Shanghai Stock Exchange, founded by Chinese employees from the U.S. and European headquarters of global medical device company Medtronic.
The goal is to produce and sell regenerative medicine products based on the technology of CGBIO and its subsidiary CG MedTech locally in China through the joint venture Lietian Biotechnology. Lietian Biotechnology plans to manufacture human tissue products, including bone, skin, tendon, and ligament grafts, as well as a separation system for adipose and bone marrow-derived stem cells.
In China, human tissue products are classified as medical devices and must undergo stringent approval procedures to be produced locally. The Chinese government operates a centralized purchasing system to procure specific medical devices through a collective bidding process.
CGBIO is pursuing a strategy of obtaining approvals for imported products and then transitioning them to local production. This aims to shorten the overall approval period and secure price competitiveness while rapidly increasing market share by leveraging Sunyu Medical's nationwide bidding and sales capabilities.
Yoo Hyun-seung, CEO of CGBIO, said, "The establishment of Lietian Biotechnology is a strategic turning point that combines CGBIO's technological capabilities with Sunyu Medical's local manufacturing and sales strengths," adding, "We plan to provide reliable regenerative medicine solutions to Chinese patients based on the clinical experience and quality accumulated in Korea."