Baropharm Set to Join KOSDAQ... Potential Expansion of Logistics Cooperation with CJ Logistics in Focus

[Financial News] As pharmacy platform Baropharm prepares to list on the KOSDAQ market, attention is also focused on whether it will expand its cooperation with logistics partner CJ Logistics. That is because Baropharm’s expansion from brokering pharmaceutical orders into distributing products such as health supplements and cosmetics could also increase related logistics demand.
 According to sources in the logistics and financial investment industries on the 1st, Baropharm is scheduled to list on the KOSDAQ market on the 11th. The final offering price is 16,400 won per share, and subscriptions for the public offering will be open to retail investors on the 2nd and 3rd.
 Founded in 2019, Baropharm is an integrated pharmacy platform that lets pharmacies compare prices and inventory from multiple pharmaceutical wholesalers in one place and place orders. At least 90% of pharmacies nationwide have signed up, and cumulative transaction value stands at 7 trillion won.
 Baropharm’s revenue rose from 11.6 billion won in 2023 to 96.7 billion won last year, increasing at least eightfold in two years. It reached 69 billion won in the first half of this year, equivalent to 71% of last year’s full-year revenue, while operating profit was 2.2 billion won, marking a return to profitability.
 Baropharm began as a platform connecting pharmacies with suppliers for orders, but has recently expanded into distribution, directly handling products. Key areas include direct purchasing through Baropharm Marketing Service (BMS), distributing partner brands and K-beauty products, and private-label (PB) health supplements, dermocosmetics and pharmaceuticals.
 The company plans to invest the funds raised through this listing in upgrading its platform, expanding its distribution network, taking its brand business global and expanding pharmaceutical manufacturing facilities, among other areas.
 CJ Logistics expects Baropharm’s business expansion to have a positive impact on their logistics partnership. As the range of products it handles directly grows, demand for logistics services such as storage, inventory management, dispatch and delivery could also increase.
 In 2024, CJ Logistics participated as a strategic investor (SI) in Baropharm’s pre-IPO fundraising and signed a contract to provide dedicated pharmaceutical logistics services.
 CJ Logistics is also expanding its pharmaceutical and healthcare logistics business. It is responding to the market by leveraging at least 20 years of accumulated pharmaceutical logistics experience, nationwide cold-chain infrastructure and e-commerce fulfillment capabilities.
[email protected] Lee Ju-mi Reporter