[Company analysis] Pharmicell Co., Ltd. (파미셀)

「Pharmicell Co., Ltd.」is a biopharmaceutical company that developed the world's first stem cell therapy. It has a biopharmaceutical business that develops and manufactures stem cell therapy and a biochemical business that manufactures various fine chemical products. In addition, this company is in charge of 80% of the global supply of Nucleoside, which is used as a reagent for virus diagnosis and the main raw material for gene therapy. The number of connected employees is about 120.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is KRW 10 million, as of 2019

Company name	Pharmicell Co., Ltd.
Company name (Korean)	파미셀
Date of establishment	Tuesday, August 20, 1968
Headquarters location	서울특별시 강남구 언주로 874, 7층
Capital	3,000
Consolidated sales	3,248
Consolidated operating profit	196
Consolidated total assets	6,326
Consolidated capital	5,151
Capital adequacy ratio	81.4%
Consolidated number of employees	120

 

 

 

2. Summary and Features

 
「Pharmicell」is a biopharmaceutical company that developed the world's first stem cell therapeutic agent in 2011, and is engaged in biopharmaceutical and biochemical businesses. Basically, they are proceeding with the development of stem cell therapeutic agents through the biopharmaceutical business, and implementing an adult stem cell storage business based on the various know-how that they have accumulated in developing therapeutic agents. In addition, this company utilized stem cell technology for developing cosmetics.

 

In 2012,「IDB-Chem Co., Ltd.」, which produces fine chemicals such as pharmaceutical raw materials, became a subsidiary of「Pharmicell」. And as a result of the merger in March 2013, this company started to produce pharmaceutical intermediates such as mPEG, Nucleoside, phosphazene, electronic materials and other industrial fine chemicals. In particular,「Pharmicell」has facilities for mass production of Nucleoside, which is a raw material for gene diagnosis and gene therapy agents, and currently supplies 80% of the world Nucleoside market.

Recently, the chemical business has been growing, mainly in the United States and Europe. Total sales in both regions were 6,657 million in 2018. But the sales was increased to 81.52 billion in 2019, which means 22.4% of growth in one year. The reason is,「Pharmicell」newly started to supply raw material of Cimzia(UCB autoimmune disease treatment drug) to their customers such as  「Nektar Therapeutics」, 「Roche」, 「Merck」 from 2019. 

In addition, due to the rapid spread of coronavirus in the early 2020s, the demand for diagnostic reagents is rapidly increasing worldwide. And 「Pharmicell」is a major supplier of Nucleoside, which is used as a raw material of diagnostic reagent manufacturing. So, as a company that handles the world's supply, it is expected to greatly expand its performance.

 

 

 

3. Major Business

 

■ Biopharmaceutical business
Mainly developing stem cell therapeutic agents for the treatment of intractable diseases. In addition, they provide stem cell storage business for people who want to prepare for illness. and this company also develops cosmetics applying stem cell related technology. Since R & D is the main of this business, the operating income is in the red.

■ Biochemical business 
Since acquiring of「IDB-Chem Co., Ltd.」in 2012, this company has been developing and producing raw drug intermediates necessary for developing new drugs such as Nucleoside and mPEG. They also manufacture 5G network boards and base station antennas, low dielectric constant materials required for mobile devices, and reactive / additive flame retardants used in printed circuit boards (PCBs). It accounts for about 85% of total sales.

 

 

 

4. Financial information

 

※Unit is KRW 10 million

		2017	2018	2019
Consolidated sales		2,519	2,835	3,248
Consolidated operating profit		-455	26	196
Consolidated total assets		6,189	5,911	6,326
Consolidated net assets		5,413	4,749	5,151
Breakdown of sales	Biopharmaceutical business	319	509	457
		-665	-458	-510
	Biochemical business	2,200	2,325	2,790
		209	484	707