April 20, 2024

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[THE INVESTOR] South Korean biotechnology firm Nature Cell has signed an agreement with China’s Cassiey Cosmetice to supply cosmetics products comprising a stem cell culture fluid, the company said on Feb. 7.

Under the contract, Nature Cell will supply the ingredients of its new cosmetics product Biostar Solution to the Chinese partner which will manufacture end products based on the stem cell culture fluid to sell them in China. 

“We will get a foothold in the Chinese market based on the vision of contributing to the treatment of human diseases and the prevention of aging with adult stem cell technology,” said Nature Cell CEO Rah Jeong-cham.

Founded in 2013, Cassiey is a social media driven cosmetics company which produces makeup, skin care and health care products with annual sales of around 800 billion won (US$699.42 million) in 2016.

Cassiey will begin selling Biostar Solution in China from April.

If some 5 million sets of the cosmetic product are sold, Nature Cell is estimated to receive over 2.5 billion won in stem cell material sales and 1.5 billion won in royalties. The company expects to generate more than 20 billion won in sales and royalties of over 10 billion won over the next five years.

On the news, Nature Cell stock rose 2.76 percent to close at 4,835 won.

By Park Han-na (hnpark@heraldcorp.com)