Genome & Company acquires U.S. K-beauty distributor, broadening revenue base beyond drug development

[Financial News] Genome & Company, which has focused on developing new drugs such as antibody-drug conjugates (ADCs) and immuno-oncology drugs, is moving to expand its K-beauty business. The strategy is to diversify its business portfolio by growing its cosmetics brands and distribution business into new pillars of growth, alongside drug development, which requires a long time for R&D achievements to translate into sales.
Genome & Company said on the 26th that it had acquired a 64.46% stake in Allbloom, a U.S. K-beauty export and distribution company, through Bloom Partners, its wholly owned subsidiary established this month, thereby securing control of the company. It plans to build on the existing distribution business while pursuing entry into the U.S. offline market for its own skincare brand, UIQ.
Drug development requires considerable time and expense for clinical trials and regulatory approvals, and business performance depends on whether development succeeds. Cosmetics, by contrast, have a different business model, as sales can be generated through product sales and distribution. Genome & Company's expansion into cosmetics is seen as an effort to diversify revenue sources and move away from a business model centered on drug development. However, how much growth in the cosmetics business will offset the cost burden of drug development remains to be seen in future results.
The key to the acquisition is securing a local distribution network in the United States. Allbloom has handled U.S. exports and distribution for Korean beauty brands and has business relationships with local retailers such as Target and MINISO. Its revenue increased 29.6%, from about 17.8 billion won in 2024 to about 23 billion won in 2025, with exports accounting for about 63% of revenue last year.
Genome & Company plans to expand its existing distribution business and secure offline sales channels for UIQ by leveraging Allbloom's local sales, logistics and inventory management capabilities. Its focus is on reducing the time and cost required to build a local distribution network from scratch and expanding its U.S. business, which has been centered online, into offline channels.
Launched in 2021, UIQ is a brand that applies Genome & Company's microbiome technology to cosmetics. Its revenue rose 50%, from about 8 billion won in 2024 to about 12 billion won last year. After opening an official brand store on Amazon.com, Inc.'s U.S. marketplace in May last year, it is broadening its sales reach by pursuing entry into offline distribution channels.
The key question is whether the acquisition of the distributor will translate into actual brand growth and improved profitability. Even with access to Allbloom's existing clients, UIQ will still need to secure its own retail placements and sales. The success of the diversification strategy is expected to depend on how much the company can increase the revenue share and profitability of its own brand while maintaining growth in its existing distribution business.
Genome & Company plans to expand Allbloom's distribution business while accelerating UIQ's entry into the U.S. offline market.
[email protected] Jung Sang-hee Reporter