Regenerative medicine corporations L&C BIO said on the 23rd that its subsidiary L&C ES will take part in Cellumed's third-party paid-in capital increase and is set to become Cellumed's largest shareholder.
A third-party paid-in capital increase is a method for a company to raise funds in return for newly issuing shares to specific corporations or financial companies.
In Cellumed's paid-in capital increase, L&C ES will be joined by Global Medical Research Center and Now IB. The issue price is 603 won, reflecting a 10% discount, and the total issue amount is 17 billion won. Upon completion, the largest shareholder will change from the existing Inscobee and five others (15.6%) to L&C ES and two others (33.9%).
Founded in 1997, Cellumed is a corporations that develops bone grafts based on human-derived biomaterials. It has business experience and production facilities across orthopedic medical devices, including demineralized bone matrix (DBM), knee cartilage (BMG), and allografts, as well as total knee replacement (TKR).
L&C BIO group said this participation in the paid-in capital increase is a strategic decision that goes beyond a simple equity acquisition to enhance the completeness of the regenerative medicine platform the group has pursued. It said the acquisition expands its portfolio from existing ECM (extracellular matrix) human tissue technology to include recombinant protein and growth factor-based technologies. ECM refers to the biological environment that determines cell survival, growth, and regeneration. The decision also reflects the view that leveraging Cellumed's production facilities can accelerate plans to increase human tissue output.
After the acquisition, Cellumed plans to sequentially unwind noncore subsidiaries, focus on its core businesses of medical devices and regenerative medicine, and normalize its financial structure. It plans to simplify its governance and speed up decision-making to build a stable foundation for operations.
Lee Hwan-cheol, chief executive of L&C BIO, said, "This acquisition is a strategic turning point to broaden applications in the field of regenerative medicine by combining human-derived peptide-based material technology with ECM technology used for tissue regeneration." Lee said, "We will pursue the normalization of Cellumed's business and stabilization of its finances step by step."
L&C BIO's main products include the acellular dermal matrix (ADM) "Megaderm," used for breast reconstruction after breast cancer treatment, and the skin booster "Ellavi Re2O (Re2O)," which delivers active ingredients directly into the skin to boost hydration, elasticity, and regeneration. Last year, it posted sales of 72.1 billion won, operating profit of 2.5 billion won, and net profit of 141 billion won.