CG Bio said it has become the largest shareholder in Innosys, a research and manufacturing company focused on orthopedic implants, following the completion of an equity acquisition on Tuesday.

The acquisition involved CG Bio finalizing share transfer agreements for a 17.75 percent stake in Innosys and Smart Solutions, along with a 5.79 percent stake in JSpace Holdings. Further solidifying its position, CG Bio also undertook a third-party allotment increase, securing an additional 11.17 percent stake in Innosys, thereby becoming the majority shareholder.

CG Bio specializes in the integration of biotechnology in the development of medical devices, including the bone substitute Novosis and the cervical cage Novomax based on bioactive glass ceramics BGS-7.

The strategic acquisition of Innosys is aimed at leveraging the latter's comprehensive research and development capabilities in spinal implants and its current good manufacturing practice (cGMP)-standard manufacturing facilities, promising a strong synergy with CG Bio's bio-medical ventures.

Following the completion of the acquisition, CG Bio has initiated a series of internal personnel and organizational restructuring to accelerate its business objectives.

Notably, CG Bio's Chief Operating Officer Chung Ju-mi has been appointed as the new CEO of Innosys.

According to CG Bio, Chung has expertise in marketing within the spine, orthopedics, and interventional medical fields and has held significant roles at Johnson & Johnson Asia Pacific as Business Development Manager and Abbott Korea's Vascular Division.

"Since she was appointed COO of CG Bio in May 2021, she has played a pivotal role in the global market expansion of CG Bio's flagship products," the company said.

CG Bio has established new divisions for sales marketing and production research to enhance its capabilities in these areas. The recent launch of the S&B (Spine & Biologic) division at the beginning of this year aims to lead the marketing activities of both companies and strengthen global business cooperation with Innosys.

"M&A, which combines technology and resources to create a larger scale and competitiveness, can be a way for medical device manufacturing companies to compete in the global market," CG Bio CEO Yu Hyun-seung said. "The acquisition of this stake is an important step for CG Bio to take a new leap forward, and we will be able to secure a stronger position in the global medical device market."

Innosys CEO Chung also said, "Recently, new convergent medical devices are being actively developed due to the development of fourth industrial technology and changes in the medical paradigm, and barriers to overseas technology trade are getting higher and higher."

However, the company will achieve greater growth by overcoming these barriers through challenge and innovation, Chung added.