Osang Healthcare becomes 2nd-largest shareholder of Yuhan affiliate

Osang Healthcare (OHC), which recently signed a comprehensive business cooperation agreement with Yuhan Corp., has emerged as the second largest shareholder of one of the latter’s subsidiaries.

Osang Healthcare said Thursday that the company has completed paying money for the three-party capital increase of Y’s Medi (formerly MG). Y’s Medi is a Yuhan subsidiary specializing in manufacturing and selling intravenous (IV) fluids.

Early this month, Osang Healthcare announced plans to acquire 1.9 million common shares for about 10.2 billion won (around $8 million) by participating in Y’s Medi’s tripartite capital increase. With the completion of its payment, Osang Healthcare has secured a 12.69 percent stake in Y’s Medi, emerging as its second-largest shareholder after Yuhan.

Y’s Medi will spend the money to fund GMP-related facilities.

The company is building its second factory in Jincheon, North Chungcheong Province, at 60 billion won. It will be an automated plant with the latest facilities for completion this year.

Osang Healthcare plans to export some IN fluids produced at Y’s Medi’s second plant. The company will also expand its export to other specialized drugs.

“Since we signed a comprehensive business cooperation agreement on May 31, we have cooperated with Yuhan Corp. and are actively discussing follow-up investments,” an Osang Healthcare official said. “Through further collaboration with Yuhan, a leader in all areas of bio and healthcare business, the company will strive to convert itself from an in vitro diagnostic firm to a bio and healthcare enterprise.”