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Photo: Daewoong Pharmaceutical |
[Alpha Biz= Kim Jisun] CG Bio, a regenerative medicine company affiliated with Daewoong Group, has entered the process of being sold to private equity firm IMM Private Equity (IMM PE).
According to investment banking sources on March 5, IMM PE was recently selected as the preferred bidder for the acquisition and has begun due diligence. The deal is expected to involve around 55 percent of the company’s controlling stake held by the largest shareholder.
The final transaction terms have not yet been determined, and details such as the exact stake and purchase price will be finalized after due diligence and negotiations. However, industry sources estimate the deal could be valued at around 600 billion won ($450 million).
CG Bio specializes in regenerative medical materials, producing artificial tissue substitutes based on biomaterials used for bone, skin and anti-adhesion treatments. The company has secured a strong position in the domestic market, particularly with its bone graft products based on bone morphogenetic protein (BMP).
Its flagship product, NOVOSIS Putty, is a bone substitute injected into damaged areas during fracture treatment or spinal surgery to stimulate bone growth. The product is the first BMP-based bone graft material developed in South Korea, and the company is pursuing expansion into overseas markets including the United States and Japan, supported by FDA confirmatory clinical trial approval.
CG Bio has shown steady financial growth. The company’s revenue increased from 129.7 billion won in 2022 to 200.8 billion won in 2024, while its earnings before interest, taxes, depreciation and amortization (EBITDA) reportedly exceeded 40 billion won last year.
The company has also recently undergone an internal restructuring. Through a spin-off, CG Bio reorganized its corporate structure around a holding entity and consolidated its medical device and regenerative medicine businesses under the CG Bio umbrella.
Market observers say the restructuring may have been a preparatory step aimed at improving corporate value ahead of the sale.
IMM PE has prior experience investing in pharmaceutical and biotech companies. In 2020, the firm acquired the pharmaceutical division of Kolmar Korea, launching Kolmar Korea Pharma (later GenOne Science), which it sold in 2024 for about 620 billion won, generating roughly double its original investment.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
