[비즈한국] Boryung is spinning off its prescription drug sales division into a new independent entity, Boryung Pharma Solutions, and expanding its role into a "specialized commercial company." This new entity will handle everything from scouting and introducing external products to marketing, sales, distribution, and post-launch growth management. The strategy is to consolidate domestic commercialization functions, which were previously managed within Boryung, into a separate corporation to respond more quickly to market changes.
Boryung held a board meeting on the 15th and approved a plan to physically spin off its Ethical Drug (ETC) sales division to establish Boryung Pharma Solutions. The spin-off date is January 4, 2027. Through a simple, physical spin-off where Boryung holds 100% of the new entity's shares, the existing Boryung will remain a listed company, while Boryung Pharma Solutions will launch as an unlisted subsidiary. The scope of the spin-off includes sales, marketing, business development (BD), and distribution functions for prescription drugs.
Jeong Woong-je, Vice President and Head of Sales at Boryung, is slated to become the CEO of Boryung Pharma Solutions. Boryung CEO Kim Jung-kyun, Chief Strategy Officer (CSO) Kim Sung-jin, and Head of Legal and Business Support Lee Hyo will join as non-executive directors.
What Boryung emphasizes in this spin-off is not just the separation of the sales organization, but the professionalization of its commercial functions. The company explains that the new entity will not merely sell Boryung products, but will also scout and introduce products from domestic and international partners to grow them in the local market.
A Boryung official stated, "Boryung Pharma Solutions aims to be a specialized commercial firm that connects and supports the entire process of a partner product’s entry into the domestic market and its subsequent growth, rather than acting as a simple Contract Sales Organization (CSO)." The official added, "The core is to integrate everything from marketability review, product introduction, and establishment of disease-specific market and launch strategies to clinical evidence-based marketing, hospital/clinic sales, distribution management, and post-launch performance analysis."
The official further explained, "While CSOs generally focus on human resource dispatch or sales promotion agency roles, Boryung Pharma Solutions differentiates itself by building an open commercial infrastructure equipped with data analysis and regulatory response capabilities, based on a directly hired professional organization."
According to Boryung, Boryung Pharma Solutions aims to be a specialist company supporting partner products from market entry through to post-launch growth. The plan is to link product marketability reviews and introduction discussions with the establishment of disease-specific market and launch strategies, clinical evidence-based marketing, hospital/clinic sales, distribution management, and even post-launch performance analysis and growth strategies.
“Not intended for cost-cutting or restructuring”… Removing decision-making constraints within the existing organization
This is precisely why Boryung is opting to hive off its sales and marketing functions into a separate entity. The company emphasizes that the purpose is not cost reduction or workforce restructuring, but rather to build an independent decision-making system tailored to the characteristics of sales.
A Boryung official stated, "The purpose of establishing Boryung Pharma Solutions is not cost-cutting or restructuring, but to increase professionalism and growth potential in the commercial field. Previously, the sales and marketing organization operated within the overall company structure, which imposed constraints on product selection, personnel/evaluation, and resource allocation. By professionalizing this into a separate entity, Boryung Pharma Solutions aims to establish a decision-making process centered on market demand and an operational system suited to the nature of sales."
The official added, "The goal is to strengthen competitiveness in the domestic pharmaceutical market by advancing specialized commercial capabilities covering not just sales, but also marketing, distribution, product introduction, and post-launch growth management."
In explaining the necessity of the spin-off, the Boryung board also cited the need to respond rapidly to intensifying competition and shifting market environments in the domestic pharmaceutical sector, as well as to secure independence for the business unit to enable professional and agile decision-making. After the spin-off, the surviving company, Boryung, will focus on strengthening competitiveness in production, R&D, and global business, while the new entity will focus on enhancing the professionalism and efficiency of domestic sales.
As a result, Boryung’s business structure will be more clearly delineated after the spin-off. The surviving entity, Boryung, will retain R&D, manufacturing/production, and global operations, while Boryung Pharma Solutions will concentrate on commercialization functions such as domestic sales, marketing, product introduction, and distribution. Boryung plans to continue pursuing new drug development, improved combination drugs, strengthening its production capacity for essential medicines like anticancer drugs and antibiotics, while expanding global open innovation, CDMO, and exports of its own products.
50 billion KRW of the 57 billion KRW in assets is cash… Securing "ammunition" as an independent business entity
The fact that a significant amount of cash is being transferred to the new entity is also noteworthy. According to the spin-off plan, the assets being transferred to Boryung Pharma Solutions amount to approximately 57 billion KRW, of which cash and cash equivalents account for approximately 50 billion KRW, or over 87%.
This aligns with the strategy of operating as a business entity that independently performs product introductions, marketing, and distribution, rather than as a simple sales agency. However, Boryung has not specified the exact use of this cash, such as for product introduction or investment funds.
The business objectives of Boryung Pharma Solutions are also not limited to the sale of prescription drugs. Its articles of incorporation include, in addition to pharmaceutical trading and distribution, medical devices, health functional foods, cosmetics, information processing and software, e-commerce, management consulting, and investments in other businesses. This effectively lays the groundwork for expanding the scope of its commercial platform in the future.
Boryung clarified that this spin-off is not a precursor to an IPO for Boryung Pharma Solutions. The company stated that there are currently no plans to list the new entity, and even if it were to pursue an IPO in the future, it would have to go through the consent procedures of the parent company's shareholders in accordance with relevant regulations. The company also maintains that no specific decisions have been made regarding further structural reorganizations such as mergers or divestitures.