Regenerative medicine corporations PharmaResearch said on the 1st that it signed a deal to acquire the U.S. cosmetics OEM·ODM company "Cosmetic Group USA (CG USA)."
With sales of PharmaResearch's Rejuran Cosmetics (cosmetics) expanding recently in the United States, the company has moved to build a North American local production system. The company said it aims to strengthen its supply chain by securing a local production base and to speed up its push into the North and South American markets.
According to the company, the contract was signed on the 30th of last month (local time). The purchase price was not disclosed by mutual agreement.
CG USA is a cosmetics manufacturing corporations with production facilities in California. It has a one-stop production system that covers product planning, formulation development, manufacturing, filling, packaging, and quality control. Based on U.S. Food and Drug Administration (FDA) registered facilities and a quality control system that meets current good manufacturing practice (cGMP), it has manufacturing infrastructure capable of producing over-the-counter (OTC) drugs.
PharmaResearch said it decided on the acquisition to build a stable supply system as demand for Rejuran Cosmetics has been rising quickly, centered on Sephora and Amazon.
Until now, it had supplied domestically produced products to the United States, but the company said that by securing a local production base, it expects to improve supply chain efficiency across production, logistics, and distribution and respond more quickly to market changes.
Based on this, the company plans to push in earnest a localization strategy for the Americas that takes into account a planned entry into the Canadian market in the second half and a future expansion into the South American market.
Rejuran Cosmetics is a premium cosmetics brand developed based on the core DOT® c-PDRN technology. The company is expanding its online and offline distribution network centered on Sephora and Amazon.
Chief Executive Son Ji-hun of PharmaResearch said, "The acquisition of CG USA is a strategic decision to strengthen supply stability and the foundation for business expansion in the North American market," adding, "By securing a local production base, we will not only back the expansion of the North American market but also secure the potential for medium- to long-term expansion of the U.S. ODM business."
Son said, "As CG USA has FDA-registered facilities and OTC production capabilities, we have laid the groundwork to expand production not only in cosmetics but also in over-the-counter drugs," adding, "Based on local production capabilities and quality infrastructure, we will continue to enhance competitiveness in the global dermacosmetics business."
A CG USA official said, "We are pleased to work with PharmaResearch in line with the growth of Rejuran Cosmetics," adding, "We will work closely to create synergy between CG USA's manufacturing capabilities and PharmaResearch's technology." Meanwhile, Cosmo Group Inc. handled advisory services for the acquisition.