PharmaResearch, a company specializing in regenerative medicine, is further solidifying its position in the North American market through its recent acquisition of Cosmetic Group USA (CG USA). This acquisition is seen as a strategic move to meet the growing demand for Rejuran Cosmetics in the United States and to establish a stable supply chain.

Background and Goals of the CG USA Acquisition

PharmaResearch announced on the 30th of last month (local time) that it had signed an acquisition agreement for CG USA. CG USA is a cosmetic manufacturer based in California, USA, providing OEM (Original Equipment Manufacturer) and ODM (Original Development Manufacturer) services. The company boasts excellent production capabilities, handling everything from product planning and formula development to quality control.

The primary objective of this acquisition is to establish a local production, quality, and inventory management system necessary for expanding the US distribution network. This is more than just acquiring an overseas manufacturer; it's a strategic choice to enhance competitiveness within the North American market.

Growth of Rejuran Cosmetics and Market Reaction

Rejuran Cosmetics, a premium derma-cosmetic brand powered by PharmaResearch's regenerative medicine technology, has seen a surge in demand recently, driven by its entry into Sephora and its presence on Amazon. This trend is expected to continue, prompting PharmaResearch to decide on the acquisition of CG USA for a stable response.

• Resolving inventory replenishment and delivery time issues
• Swift response to quality concerns
• Securing opportunities for expanding ODM business in the US

The Importance of Securing a Local Production Base

Through the acquisition of CG USA, PharmaResearch will secure a local production base, laying the groundwork for increased supply chain efficiency and enhanced market responsiveness. Notably, the company plans to actively pursue its localization strategy for the Americas to expand into the North and South American markets.

Future Outlook and PharmaResearch's Vision

Son Ji-hoon, CEO of PharmaResearch, stated, "The acquisition of CG USA is a strategic decision to strengthen supply stability and the foundation for business expansion within the North American market." He added, "This acquisition also secures the potential for expanding our ODM business in the United States." This move is expected to serve as a catalyst for PharmaResearch to further solidify its standing in the North American market.

We look forward to PharmaResearch's future endeavors and wish them continued success in the North American market!