CGBIO (CEO Yu Hyun-Seung), a specialist in bio regenerative medicine, announced on the 22nd that it achieved record-high sales of 156.7 billion won and an operating profit of 20.4 billion won on a consolidated basis in 2023. This marks a 20.8% increase in sales and a 12% increase in operating profit compared to the previous year, while also achieving a remarkable feat of nearly doubling both sales and operating profit in just 3 years.
The steady sales growth is attributed to the balanced growth across various regenerative medicine fields and the effective global market expansion strategy. Firstly, the bone substitute ‘Novosis Orthopedics,’ primarily used in the spine area, achieved 30% growth compared to the previous year by expanding sales into the fracture field. Moreover, the positive market response driven by the dissemination of meaningful clinical experiences within the academic community and the presentation of new papers contributed to the strong performance.
Notably, the research results on lumbar interbody fusion using Novosis Orthopedics, conducted as a preliminary clinical trial before the FDA approval trial for the next-generation bone substitute ‘Novosis Putty,’ designated as an FDA Breakthrough Device in January, were published in the SCI international journal ‘Journal of Clinical Medicine.’ This confirms that Novosis Putty is one step closer to a successful entry into the U.S. market.
Sales of the filler product line increased by 127% compared to the previous year. This growth is attributed to the significant increase in exports worldwide as the number of export countries expanded to 25. Particularly, the result is due to the diversification of export countries from Asia-centric exports, mainly China, to Europe, the Middle East, Central and South America and Oceania. Using this trend as a springboard, the company is expected to continue its growth trajectory.
Furthermore, with the license-out agreement for the calcium filler ‘Facetem’ signed with HTDK Shanghai (hereinafter HTDK), a Chinese medical device specialized distributor, last October, Facetem will be supplied to HTDK for 10 years after obtaining Chinese approval. This has laid the foundation for securing approximately 100 billion won in sales for the first 5 years.
In addition, the skin graft material Cederm line recorded growth compared to the previous year, backed by the increasing demand for breast reconstruction surgery due to breast cancer. Breast cancer is the most common cancer among Korean women and the number of patients is continuously increasing every year. As the life expectancy of modern people reaches the late 80s, ‘breast reconstruction surgery,’ which restores the shape of the excised breast along with tumor resection surgery, is steadily gaining popularity.
This year, the company aims to achieve total sales of 200 billion won by securing new growth engines through the expansion of new businesses such as consumer business (B2C), interventional medical devices and stem cell business, strengthening filler exports, and establishing a dental business division. Plans are in place to expand the microneedle patch business and renew the launch of cardiovascular stent products. In the cell therapy field, collaborations with various regenerative medicine institutions are also being pursued. To enhance competitiveness in the global market, a second factory will be established in Hyang-nam, and the microneedle manufacturing facility will also be expanded.
The dental business division plans to introduce a total implant solution that utilizes CGBIO’s accumulated know-how in the dental field, from personalized implant guides to pre- and post-implant treatment care and surgery, all performed using CGBIO products. If CGBIO secures the implant product line, it will become the first domestic company to possess all solutions in the fields of allogeneic bone grafts, synthetic bone substitutes, bone morphogenetic proteins and implants.
“Including the sales of MBase and Inosis, which were acquired last year, we expect to record sales of over 200 billion won this year,” said Yu Hyun-Seung, CEO of CGBIO. “We will continue to lead the global regenerative medicine industry by maintaining growth through product competitiveness enhancement and new business expansion.
