SK chemicals said that it has decided not to proceed with the sale of its pharmaceutical business unit despite having previously signed a non-binding memorandum of understanding (MOU) with Glanwood Private Equity.

SK chemicals' business divisions are divided into green chemicals, which produces eco-friendly chemical materials, and life science (pharmaceutical business unit), which develops and produces pharmaceutical products.

The company had been contemplating the sale of its pharmaceutical division and had been in discussions with Glenwood PE regarding specific terms since September of 2023. The sale was expected to be worth about 600 billion won ($448 million).

However, the company said Wednesday it would maintain its current business portfolio and focus on stable business operations amid uncertain market conditions.

SK chemicals said it intends to concentrate on the growth of its pharmaceutical business and the creation of new opportunities within its existing business structure.

The company plans to expand its global contract development and manufacturing organization (CDMO) business while also pursuing additional growth in core product lines. Collaborative marketing efforts with domestic and international partner companies are also on the agenda.

The pharmaceutical business unit is responsible for marketing products such as Joins, a treatment for arthritis, Trast, a pain relief patch, and Ginexin-F Tab, a blood circulation enhancer containing ginkgo leaf extract.

Regarding the cancellation of the pharmaceutical business unit sale, an SK Chemicals official clarified to Korea Biomedical Review that the MOU with Glenwood PE, which had been discussing the sale, was no longer relevant, given the decision to continue operations.

The official added that although the company had encountered some issues with the labor union during the initial discussion of the sale, bilateral communication is expected to smooth out.

SK chemicals' initial sale plan ran into immediate opposition from its union.

During that time, the SK chemicals trade union of pharmaceutical, clerical, and sales workers strongly condemned the sale of the pharmaceutical division, saying they would resolutely oppose the sale by any means available to the union.

The official said communication with employees would follow the official announcement made through public disclosure.