South Korea’s botulinum toxin maker Hugel Inc. said on Wednesday it will set up a subsidiary in the U.S. to explore market opportunities for injectable beauty product Botulax and expand business outside Korea.
The new entity will be established in the form of a joint venture with Croma-Pharma GmbH, an Austrian partner which has marketing rights to the product in the U.S., Europe, Australia and New Zealand.
Botulax is labeled to contain botulinum toxin type A and is administered as an injectable treatment for cosmetic purposes, but is not yet commercially approved in the U.S.
Hugel will dole out $90 million to claim a 70 percent stake in the JV. Croma-Pharma will control the remainder in return for transferring its marketing rights and subsidiary ownership to the new company.
The JV will be responsible for developing and selling Botulax from Hugel and hyaluronic acid fillers from Croma-Pharma in the U.S., Canada, Australia and New Zealand. Hugel shares were up 4.12 percent to finish at 460,300 won ($410) on Thursday.
By Shin Chan-ok and Minu Kim
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]