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Author : adminDate : 2022-01-04 14:51

HLB completed the acquisition of FA, highly expected to turn into a surplus this year

HLB completed the acquisition of FA, an in vitro diagnostic medical device company, and officially launched it as a healthcare division.

 

HLB announced in a public announcement on the 4th that it has completed all the merger and acquisition procedures for FA. Earlier in October last year, HLB signed a stock trading contract to acquire FA through a board resolution and took over 28,000 shares of FA.

 

FA is a company that manufactures and sells in vitro diagnostic tools, cleaning agents, and animal medicines that are essential for testing and preventing infectious diseases. Due to the recent impact of COVID-19, sales, which stood at 8.7 billion won in 2019, exceeded 60 billion won in 2020, and are expected to surpass 100 billion won in 2021, the highest ever.

 

FA's rapid growth is expected to continue this year. This is because the demand for in vitro diagnostic tools and cleaning agents continues to increase due to the prolonged COVID-19 and the spread of Omicron mutations. FA’s sample collection tool is certified by the U.S. FDA and is being used for PCR tests in the U.S. and Europe, benefiting directly from the increase in COVID-19 confirmed cases. Abbott, a large U.S. healthcare company, is the largest customer.

 

The acquisition of FA, a surplus company, is expected to significantly increase HLB's financial soundness. With the completion of the merger and acquisition of FA, F.A. has been reorganized into a ‘healthcare division’, one of the HLB business divisions. The existing sales performance of FA will be reflected in HLB's performance from the first quarter of this year.

 

Apealea, a third-generation paclitaxel drug that HLB's U.S. subsidiary Elevar Therapeutics has secured global rights this year, is also expected to start selling in the U.K. and Germany as a treatment for ovarian cancer, signaling a green light for HLB operating profit to turn into a surplus.

 

An HLB official said, "FA, which has been reorganized into our healthcare division, has a 60% domestic share in the alcohol swap sector and exports continue to increase every year" adding, "As our sales and operating profit are expected to increase significantly with the completion of the merger and acquisition, we expect a re-evaluation of corporate value this year.”