Dongkook Pharmaceutical is set to spin off its contrast medium business into a separate company, according to notice the company posted in the stock market Tuesday.

Dongkook Pharmaceutical expects the new company, tentatively named Dongkook Life Science, to enhance expertise in this business and improve profitability. It will hold an extraordinary shareholder meeting in late April to approve the spinoff, which will go into effect on May 1.

The new company, while strengthening its specialty in contrast agent field, will likely set up a responsible management system. It also will enter into the diagnosis equipment business using contrast agent this year. Dongkook Pharmaceutical expects its new subsidiary to increase both sales and profitability through successful specialization.

Dongkook’s contrast agent business unit recorded sales of the 40 billion-won ($36 million) range last year and is expected to register the turnover of more than 50 billion won this year because of its new diagnosis equipment business. After building independent production facilities and other infrastructure, it will push to make an initial public offering as a company specializing in diagnosis medicine and equipment, the company said.

“More than 30 percent of our contrast agent sales are being made in overseas markets, which have grown at a steady tone because of increasing population and rising demand for diagnosis,” a company official said. “We will go head to head in continuously growing foreign markets, armed with competitiveness as Korea’s No.1 company in the contrast agent business.”