Change is in the air for the leadership structure of HUGEL, a medical aesthetics bio corporations.
According to ChosunBiz reporting compiled on the 15th, Chairperson Cha Seok-yong, who has served as the head of HUGEL since 2023, is expected to leave the company when his term expires in Mar. next year.
Chairperson Cha is also well known as a long-serving CEO who led LG H&H for 18 years. Cha currently serves as an advisor to LG H&H along with HUGEL, and is said to be set to retire around the beginning of next year.
Recently, Cha sold off a large portion of his HUGEL shares. From last month through the 2nd of this month, Cha sold a total of 15,000 HUGEL shares in six on-market transactions. The exercise date for stock options granted in Mar. 2023 arrived on May 14, making a sale possible. The amount comes to 3.83 billion won.
A source in the biotech industry said, "It appears Cha is disposing of his holdings ahead of stepping down."
Regarding Cha's large share sale, a HUGEL official emphasized that it was "merely a transaction based on Cha's personal financial planning" and "a decision unrelated to the company's performance outlook or business direction."
HUGEL's flagship products are botulinum toxin products and fillers. HUGEL posted record results last year with sales of 373 billion won and operating profit of 166.3 billion won.
With Cha choosing to retire instead of serving another term in Mar., changes are also expected on HUGEL's board. Cha has served as chair of the board.
According to a person familiar with HUGEL's internal affairs, Global CEO Carrie Strom, who joined in Oct., is expected to newly join the board next year. HUGEL's board currently consists of seven directors: five other non-executive directors and two outside directors. Aside from the outside directors, all remaining directors are from GS Group and CBC Group.
In Sept., HUGEL hired CEO Jang Doo-hyun, a former professional manager from the pharmaceutical company Boryung, followed in Oct. by CEO Carrie Strom as global CEO. From May 2020 to Feb. this year, Strom served as senior vice president at the U.S. pharmaceutical company AbbVie and as global president of aesthetics at Allergan.
The company described the background for hiring the two CEOs as building a two-top structure aimed at "domestic and overseas co-growth."
Some in the market view it as groundwork by the largest shareholder, CBC Group, to push for a sale of HUGEL's management control.
HUGEL's largest shareholder is Aphrodite Holdings, which holds 43.53% equity. Aphrodite Holdings is a special purpose company (SPC) established to acquire HUGEL's management control that Bain Capital was selling in 2021, and its shareholders are the Singapore-based global healthcare private equity firm CBC Group, GS Group and the SPC IMM Investment jointly funded by a domestic private equity firm IMM, and Abu Dhabi's sovereign wealth funds Mubadala Investment. At the time, it acquired HUGEL's management control for about 1.7 trillion won.
On this, HUGEL drew a line, saying it was a "leadership reshuffle to strengthen global business." Regarding Cha's retirement, the company said, "There is a remaining board resolution process, and it will be decided through the board."
An internal HUGEL source said, "The role-sharing structure between the Korea CEO and the global CEO may look unusual now, but after Chairperson Cha's term ends early next year and CEO Carrie Strom joins the board, the role division will become even clearer." The company emphasized, "Next year, we plan to pursue global business more aggressively."