Boryung finalizes spin-off of ETC sales division; new company to launch next January

[Financial News] Boryung will spin off its ethical drug (ETC) sales division and operate it as a separate entity. The plan is to separate R&D and production from sales and marketing, clarifying accountability and decision-making for each business.
Boryung said the proposal to approve a split-off plan for its ETC sales division passed as submitted at its 63rd extraordinary general meeting of shareholders, held on the 28th at Boryung Building in Jongno District, Seoul. A proposal to approve a plan for holding and disposing of treasury shares also passed.
Under the split-off, Boryung will remain a listed company and own 100% of the newly established Boryung Pharma Solution, which will oversee the ETC sales division. The new company will operate as an unlisted company, with the split-off taking effect on January 4 next year. Boryung Pharma Solution will handle domestic sales and marketing, as well as product sourcing and distribution, while its parent, Boryung, will oversee R&D, production and global business.
Boryung CEO Kim Jung-kyun explained that the purpose of the split-off was “to clearly place decision-making authority and accountability for results within a single corporation.” Boryung plans to add 26 of its own products and 16 in-licensed products by 2030. As its product portfolio expands, Boryung will handle R&D and production, while Boryung Pharma Solution will take charge of sales and marketing and performance management after launch.
Boryung also reiterated that it has no plans to list Boryung Pharma Solution. Kim said the disclosure that the company “does not plan to apply for a preliminary listing review within five years of the split-off” does not mean it intends to pursue a listing after five years. Listing a subsidiary created through a physical split-off requires the consent of shareholders of the parent company, and that requirement will not be waived even after five years, he explained. The new company’s articles of incorporation also stipulate that it must notify the parent company in advance of any listing plan and may proceed only if the parent expresses its approval.
At the meeting, shareholders also approved a proposal to dispose of 1,774,000 of Boryung’s 3,597,096 treasury shares for employee compensation. Of these, 445,000 shares will be distributed as stock grants to 1,780 employees, with 250 shares per person. The aim is to encourage all employees to become shareholders and share in the company’s growth by allocating the same number of shares to everyone, regardless of rank or performance.

[email protected] Jung Sang-hee Reporter