Boryung has resolved to establish Boryung Pharma Solution, a specialized commercial entity dedicated to sales and marketing of prescription drugs.
Boryung approved the spin-off plan at a board meeting.
Boryung Pharma Solution is expected to be established next January as a wholly owned subsidiary, with Boryung retaining 100% ownership, following shareholder approval in October.
A physical spin-off involves separating a specific business division from an existing company and establishing it as a separate legal entity while the parent company retains ownership of the new company’s shares. This differs from a split-off in which shares of the newly established company are distributed directly to existing shareholders.
Ahead of its 70th anniversary next year, Boryung has presented a new vision of becoming a life-science research infrastructure company. The company plans to develop its production and R&D, commercial, and space life-science research businesses into three specialized infrastructure platforms, each with independent competitiveness.
Boryung has set a target for Boryung Pharma Solution, a key growth engine for its domestic business, to achieve more than 10% market share in Korea, establishing itself as the country’s leading pharmaceutical commercial platform.
To achieve this goal, Boryung Pharma Solution plans to continuously introduce blockbuster products from Korea and overseas, including Boryung’s own products, while diversifying its portfolio. The company aims to establish itself as Korea’s leading commercial platform through a virtuous cycle in which strong commercial capabilities expand its product portfolio, while the expanded portfolio further strengthens its sales and marketing competitiveness.
Employees in sales, marketing and corporate support functions will transfer to Boryung Pharma Solution without changes to their employment conditions. The new company plans to provide employees with industry-leading compensation and various opportunities for career growth, while creating a work environment optimized for sales and marketing operations.
Boryung plans to strengthen internal communication through various initiatives, including on-site information sessions, to ensure a smooth transition and will continue to gather feedback from employees.
Boryung CEO Kim Jung-kyun said the launch of Boryung Pharma Solution is aimed at enabling each business to focus on its core strengths and achieve greater growth. He also emphasized that the company has no plans for a future sale of the business or separate listing of the new subsidiary, addressing potential concerns that could be raised internally or externally.
