EL&C Biotech has raised 60 billion KRW through convertible bonds to invest in Curexo and to expand its presence in the burgeoning Chinese medical device market.

Target Company Overview

EL&C Biotech is focused on the manufacture and distribution of skin and knee cartilage grafts. The company is taking significant steps to penetrate the Chinese market, leveraging substantial investment from a Korean private equity firm experienced in the region. This strategic move involves equity investments in local firms aiming to expand their presence in China.

Recently, EL&C Biotech announced the issuance of convertible bonds (CB) worth 60 billion KRW, primarily aimed at investing in the orthopedic sector. A significant portion of these funds, approximately 40 billion KRW, will be directed towards acquiring shares in Curexo, a company specializing in surgical robotics for knee implants. This investment allows EL&C to become the second-largest shareholder with a 14% stake in Curexo.

Industry Overview in China

The orthopedic device industry in China is experiencing rapid growth, driven by an aging population and increasing demand for innovative healthcare solutions. Rising income levels and improving healthcare facilities are furth