CG MedTech, specializing in orthopedic implants and medical devices, said Monday that the company held its 28th annual general meeting of shareholders and board of directors last Friday at its headquarters in Uijeongbu, Gyeonggi Province.

At the meeting, all four agenda items were passed as initially proposed, including the approval of the 28th (2024) consolidated and separate financial statements, the appointment of new inside directors, and the approval of director and auditor compensation limits.

At the subsequent meeting, the board of directors appointed Yu Hyun-seung , CEO of CGBio, a regenerative medicine specialist and CG MedTech's parent company, signaling the full-scale expansion of the business based on the group's strategic alignment.

New CEO Yu graduated from Seoul National University's Department of Inorganic Materials Engineering. As a graduate student, he researched the synthesis of calcium hydroxyapatite (CaHA), a mineral component of human bone, and its use in artificial bone, and then entered the field of regenerative medicine in 2000 by founding Bioalpha (the predecessor company of CGBio). He is also responsible for developing and succeeding NOVOSIS, the first bone substitute system based on bone morphogenetic protein (BMP-2) for orthopedics in Korea, and Facetem, a calcium filler for wrinkle improvement.

Yu is regarded as a hands-on CEO who has developed various biomaterial medical devices related to the aging population. Yu, who has personally led all areas of R&D, production, licensing, sales, marketing, and global expansion, plans to drive significant growth in the field of tissue regeneration medical devices through the strategic alliance between CG MedTech and CGBio.

Through this appointment, CG MedTech plans to strengthen its Resomet orthopedic implant business, which is made of biodegradable magnesium alloy, by combining CGBio’s biomaterial-based technology, global distribution network, and marketing capabilities. It will also strengthen its medical device portfolio and business expansion foundation.

According to company officials, CG MedTech's orthopedic and spinal metal implant manufacturing infrastructure and export-oriented business structure, combined with CGBio's innovative product planning and biomaterial R&D capabilities, are expected to maximize synergies in the field of advanced convergence medical devices.

The two companies aim to become an integrated solution provider in spine and orthopedic surgery by developing integrated products that fuse regenerative medicine-based biomaterials and metal implants, linking joint marketing and sales networks for the global market, and integrating global licensing and clinical strategies, the officials said.

In 2024, CG MedTech recorded 22.6 billion won ($15.3 million) in revenue and 2.28 billion won in operating profit on a standalone basis. While revenue was flat year-over-year, operating profit increased by about 25 percent, indicating an improvement in profitability. Overseas sales totaled 13.1 billion won, accounting for about 58 percent of the total, while U.S. sales grew by about 36 percent year-over-year to 3.58 billion won.

In addition, CG MedTech is expanding its portfolio and sales channels, including the recent acquisition of GDS, a digital dentistry company, to expand into the dental business, the construction of a new headquarters, and an exclusive supply agreement for NOVOSIS TRAUMA with Johnson & Johnson MedTech, a global medical device leader.

The company plans to further consolidate its position as a globally competitive medical device maker by organically integrating technology, products, and organizations with CGBio.

“Based on technology and global business experience at CGBio, CG MedTech will further strengthen its product portfolio for the treatment of degenerative diseases and grow into the world's No. 1 medical device company in the field of tissue regeneration with upgraded sales capabilities through strategic alliances,” CEO Yu said. “We will strengthen inter-organizational collaboration to organically combine the manufacturing, R&D, and marketing capabilities of both companies and create tangible results in the global orthopedic and spine markets.”