[Edaily Reporter Kwon Oh Seok ] Hana Securities announced on the 24th that it views Innosys(056090)as a company capable of charting a roadmap for the overseas expansion of its ECM Skin Booster, a dermal filler. However, it did not provide an investment rating or target price. CG MedTech is a subsidiary of Sijibio and specializes in spinal and dental orthopedic products.

Kim Da-hye, an analyst at Hana Securities, commented, “IMM Private Equity (PE) appears to have decided to invest in C-G Bio because it views the company’s entry into the high-growth, high-profitability allogeneic dermal ECM skin booster market positively. C-G Bio has long been engaged in the human tissue graft business and possesses such advanced technological capabilities that it has even signed a supply agreement with J&J.”
Earlier, on the 18th, news reports indicated that IMM PE was set to sign a share purchase agreement to acquire a 51% stake in C-G Bio for 561 billion won, causing CG MedTech’s stock price to rise by 30% the following day (the 19th).
The analyst added, “In the fiercely competitive autologous dermal ECM skin booster market, C-G Bio has opted for a dual-track structure through its CDMO business, focusing solely on production and quality via B2B contracts rather than investing in distribution and marketing.”
He also mentioned that the company signed a CDMO contract for autologous dermal ECM skin boosters with KOLON CORPORATION on the 15th. Analyst Kim explained, “This is a different approach from that of major allogeneic dermal ECM manufacturers, who sell products under their own brands and enter into partnership agreements with distributors,” adding, “CG MedTech has chosen to increase its market share by supplying products in a CDMO format to companies looking to handle allogeneic dermal ECM skin boosters, regardless of the fierce competition among brands.”
He further emphasized, “This strategy is based on confidence in the high marketability of allogeneic dermal ECM skin boosters and future CAPA (production capacity). Rather than entering the competition late as a latecomer with its own brand, the company is leveraging the 14,000 pyeong production facility of its parent company, Sijibio, to supply high-growth, high-margin allogeneic dermal ECM products via CDMO on a B2B basis.”
He noted, “CG MedTech’s parent company, SJ Bio, has been operating in the human tissue graft business for over 10 years alongside L&C BIO and HANS BIOMED CORPORATION, and has received AATB certification from the American Association of Tissue Banks, which is awarded to companies that meet stringent donor selection and processing standards.” “Furthermore, we have experience exporting to the U.S. and other overseas markets through a supply contract for the bone substitute Novosys signed with DeFusines (the orthopedic division spun off from J&J), and CG MedTech has also begun trading orthopedic products with DeFusines through its parent company,” he said.
He continued, “With its reliable AATB certification and experience expanding into overseas markets with global companies, CG MedTech will certainly not fall behind in its overseas expansion of allogeneic dermal ECM,” and added, “We expect the allogeneic dermal ECM CDMO business to grow more than threefold compared to this year’s revenue by attracting additional clients next year.”