April 26, 2024

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[THE INVESTOR] Dongkook Pharmaceutical will spin off its contrast medium arm as a new subsidiary in order to strengthen expertise in the field and improve profitability, the firm said March 21.

The new entity, which tentatively named Dongkook Life Science, is subject to approval from its shareholders in a meeting to be held on April 28. 

“Based on top-tier competitiveness in the domestic contrast agent market, the company will seek to put solid footing in the global market, which is growing steadily,” the company said.

Over 30 percent of contrast medium-related products sales come from overseas, it added.

The unit posted revenue of 40 billion won (US$35.7 million) last year.

After establishing its own manufacturing facilities and infrastructure, Dongkook Life Science plans to issue an initial public offering, according to the company.

The expected effective date for the spin-off is May 1.

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