SK chemicals Site Manager
- SK chemicals signs “Evaluation Service Agreement for Merger with SK Pharma”
- Plans to complete merger within the first half of 2005
- Bio science business with annual sales of 1.3 trillion k_won will emerge in 2005 |
(Seoul, Dec. 23) SK chemicals (CEO Hong, Ji-ho) has begun preparations for a merger with SK Pharma by signing the “Evaluation Service Agreement for a Merger with SK Pharma” with the Samil Accounting Firm on Dec. 23.
SK chemicals, which has officially announced its plan for a merger with SK Pharma, has concentrated its resources on bio science lines by selecting it as its core business since mid 1980s. Its planned merger with SK Pharma is attributable to SK chemicals’ decision to further expedite its efforts to accomplish such strategic goals.
To that end, SK chemicals plans to complete its merger procedures with SK Pharma within the first half of next year. The process will be completed through a board of directors resolution when the merger evaluation report become available.
SK chemicals, holding 100% of SK Pharma equity shares, has maximized its synergy effect by combining the research capabilities of SK chemicals Bio Science Research Lab and SK Pharma’s marketing capabilities.
- Planned merger completion: Within first half of 2005
- Merger objectives:
* Strengthening bio science and pharmaceutical lines
* Maximizing synergy (combining SK chemicals’ R&D and SK Pharma’s production and marketing capabilities)
* Upgrading SK chemicals shareholder values
- Equity owner of SK Pharma: 100% owned by SK chemicals
- Estimated sales of 2004
* SK chemicals: 1.3 trillion won
* SK Pharma: 85 billion won
- Estimated sales of 2005
* SK chemicals: 1.2 trillion won
* SK Pharma: 110 billion won
- Feature: Being a small scale merger by acquisition, the merger may be possible with a resolution by the company’s board of directors and not by its shareholders. |
▣ 1.3 trillion won annual sales bio-science business will emerge in 2005
SK chemicals with an estimated sales of over one trillion won for 2004 will be reborn into a bio-science business with over 1.3 trillion won in sales in 2005 by acquiring a pharmaceutical line of sales.
So far, a triangular support system has been constructed for the bio-science part of SK chemicals around SK chemicals Bio-Science Research Lab, which has supported SK Pharma and Dongshin Pharm.
Under the circumstances, the Bio-Science Research Lab’s technical capabilities have been recognized home and abroad by demonstrating outstanding R&D performance, including the development of Ginexin, Trast Patch, Joins and Sunfla, Korea’s first platinum-based anti-cancer medicine. The Lab has successfully developed the world’s first third generation platinum complex anticancer medicine Sunfla (Korea’s new No. 1 drug), Ginexin, a peripheral blood circulation enhancing medicine made of ginko leaves and Joins tablets, Korea’s first new drug made of natural substances. The Lab also endeavors to develop new medicines, including oral diabetic, corpulence and asthma curing drugs.
In addition, the Lab focuses on development of special and sustained-release medicines like Trast, an arthritis patch, and Omed, a gastric ulcer tablet.
▣ Status of SK Pharma
SK Pharma is ranked No. 1 in Korea with over 20 billion won in sales of both Trast (arthritis anodyne and antiphlogistic patch) and Ginexin (peripheral blood circulation remedy made of ginko leaf essence). Its top five hit products have over 10 billion won in sales, including Revopride (stomach cure), Omed (gastric ulcer cure) and Joins (arthritis cure). It has further strengthened its product portfolio with Skad (hypertension cure) of which sales were started this year.
SK Pharma has achieved very rapid growth by having increased its sales from 63.8 billion won in 2002 to 73 billion won in 2003. Its sales are expected to grow to 85 billion won in 2004.