IMM Private Equity has agreed to acquire a controlling 51% stake in CGBio, a Korean regenerative medicine company affiliated with the Daewoong Group, for KRW 561 billion (approximately USD 406 million), implying a total enterprise valuation of KRW 1.1 trillion (USD 730 million), according to people familiar with the matter. The deal, which includes a put option for an additional 28.1% stake, would give IMM PE up to 80% ownership if CGBio hits a target EBITDA of KRW 100 billion.
Deal Structure and Terms
The share purchase agreement was signed in late June 2026. The seller is A-Hana, the holding entity through which Daewoong Pharmaceutical's Chief Vision Officer Yoon Jae-seung and related parties have held a majority stake in CGBio. Under the put option, the remaining 28.1% block transfers at the same per-share price once CGBio's EBITDA doubles to KRW 100 billion — approximately twice the company's current earnings level, implying the deal structure rewards IMM PE if the portfolio company executes on its US expansion plan.
IMM Private Equity brings a track record in Korean healthcare. In 2024, the firm sold its entire stake in Genuone Sciences — a pharmaceutical CDMO it acquired from Korea Kolmar for KRW 320 billion in 2020 — to Macquarie Asset Management for approximately KRW 620 billion, generating a roughly 2× return over four years.
Novosis and the J&J Partnership
The investment thesis centers on CGBio's flagship product Novosis, a recombinant human bone morphogenetic protein-2 (rhBMP-2) based bone graft substitute. Novosis received FDA Breakthrough Device Designation, a fast-track regulatory pathway that expedites review for devices offering significant advantages over existing treatments for serious conditions.
In a cornerstone commercial agreement, CGBio signed an exclusive distribution contract with Johnson & Johnson's DePuy Synthes division covering the North American and Australian markets, with projected sales through 2040 totaling KRW 2.5 trillion (approximately USD 1.6 billion). The contract places Novosis within DePuy Synthes' global orthopedic portfolio — one of the largest in the world — and provides CGBio with a durable revenue runway as the deal period spans nearly 15 years.
Export Trajectory
CGBio's overseas sales have grown at a compound annual growth rate of roughly 31% in recent years, rising from USD 12.6 million in 2023 to USD 17.4 million in 2024 and USD 21.8 million in 2025. The acceleration reflects the initial commercial ramp of Novosis in markets outside Korea and positions CGBio for sharply higher volumes once the J&J distribution channel reaches full commercial scale in North America.
Strategic Context
The deal comes as South Korea's regenerative medicine and orthobiologics sector draws increasing attention from private equity investors. CGBio's rhBMP-2 platform differentiates it from conventional autograft and synthetic bone graft suppliers by triggering natural bone growth — a mechanism increasingly favored in spinal fusion and trauma surgeries as surgeons seek to reduce re-operation rates.
For IMM PE, the acquisition provides a rare combination: a proprietary biotech platform with FDA regulatory precedent, a contracted revenue stream underpinned by a J&J offtake agreement, and a growth market in aging-population economies where orthopedic procedures are expanding. CGBio also operates in wound care and aesthetic medicine, offering diversification within the Daewoong Group's broader biopharmaceutical ecosystem.
Daewoong Pharmaceutical (069620.KS), the listed flagship of the Daewoong Group, is not a direct party to the transaction but shares research infrastructure and distribution relationships with CGBio as a group affiliate.
Sources: KED Global — IMM PE set to acquire CGBio · Seoul Economic Daily — IMM PE to Acquire CGBio for 1.1 Trillion Won · The Korea Herald — Daewoong affiliate CGBio in talks for private equity sale
