IMM Private Equity has finalized a deal to acquire up to 80% of CGBio Co., a regenerative medicine and implant maker affiliated with Daewoong Pharmaceutical, in a transaction valued at up to ₩1.11 trillion (approximately USD 730 million), Korea Economic Daily reported on Wednesday.
The buyout firm is betting on CGBio's accelerating push into the United States medical device market, anchored by a distribution agreement with DePuy Synthes, the orthopaedics unit of Johnson & Johnson, that projects USD 1.6 billion in North American and Australian sales through 2040.
From Bone Grafts to the Operating Table
Founded under the Daewoong Group umbrella, CGBio develops regenerative medicine products across bone substitutes, skin treatments, tendon repair, and vascular grafts. Its flagship product, NOVOSIS PUTTY, uses recombinant human bone morphogenetic protein-2 (rhBMP-2) technology to stimulate bone regeneration — a platform that has drawn regulatory interest in both the United States and Japan.
The company posted ₩200.8 billion (approximately USD 148 million) in revenue for 2024, with EBITDA exceeding ₩40 billion, reflecting a steady climb from ₩129.7 billion in 2022. Export revenues reached USD 21.8 million in 2025, a 31% jump from USD 17.4 million a year earlier, with shipments spanning Europe, the Middle East, Southeast Asia, and South America.
DePuy Synthes Partnership Anchors the Upside
The strategic heart of the deal is the DePuy Synthes agreement, under which J&J's orthopaedics arm will distribute CGBio products across the United States, Canada, and Australia. The partnership gives IMM PE a leveraged entry point into the world's largest medical device market without bearing the full cost of building an independent sales infrastructure.
By IMM PE's projections, the channel could generate USD 1.6 billion in cumulative sales by 2040 — roughly 11 times CGBio's current annual revenue — if NOVOSIS PUTTY achieves commercial scale in North America.
IMM PE's Playbook
For IMM Private Equity, the CGBio bet follows a familiar script. In 2020, the firm invested ₩320 billion to acquire and consolidate pharmaceutical manufacturing assets, then exited in 2024 for approximately ₩620 billion — a near-doubling of capital over four years.
The firm reportedly outcompeted several rival bidders during a competitive auction process that kicked off in late 2025. Earlier this year, IMM was selected as preferred bidder for A-Hana's 51% controlling stake, with the final transaction now expanding to as much as 80% of outstanding shares. The implied enterprise value of approximately ₩1 trillion puts CGBio at roughly 25 times 2024 EBITDA — a premium that investors appear willing to pay for medical technology with a defined U.S. commercialisation pathway.
Sector Context
The deal adds to a wave of private equity interest in Korean life science and medical technology companies, as global buyout firms seek exposure to high-growth healthcare assets trading at discounts to Western peers. Korean medical device exporters have benefited from rising demand in emerging markets and growing interest from strategic partners in the United States and Japan seeking to diversify supply chains beyond domestic incumbents.
Sources: KED Global | Korea Herald | Korea Biomedical Review
