CGBio Signs 180 Billion Won Sales Agreement for Bone Substitute "Novosis"

Full-scale Entry into China's 3 Trillion Won Bone Graft Market

CGBio, a company specializing in regenerative medicine, announced on December 12 that it has signed a partnership and sales agreement for its innovative bone substitute material "Novosis" at the headquarters of Shanghai Sanyu Medical, an orthopedic medical device specialist based in Shanghai, China.

(From left) Yoo Hyunseung, CEO of CGBio, and Siwinong Sanyu Medical CEO are taking a commemorative photo after signing a partnership and sales agreement for the bone substitute material "Novosis." CGBio

This agreement targets mainland China and represents a mid- to long-term collaboration, with cumulative local sales expected to reach approximately 180 billion won over six years based on hospital supply prices, following product approval. Through this agreement, CGBio plans to actively pursue a more comprehensive market expansion strategy in China's bone graft (substitute) and regenerative medicine market.

The Chinese bone graft market is projected to grow from about 9.6 billion yuan (approximately 1.8 trillion won) in 2023 to over 3 trillion won by 2030. Centered around Novosis, CGBio aims to achieve 1 trillion won in sales in the Chinese market by 2030 as its mid- to long-term goal, and will intensify its efforts to penetrate the local market.

Novosis is the world's second, and Korea's first, bone substitute material incorporating bone morphogenetic protein. Based on porous hydroxyapatite ceramic, it stably releases bone morphogenetic protein over several months to promote bone regeneration, and is designed to minimize ectopic bone formation, making it applicable in various fields such as fractures, spine, and orthopedics. Its strengths lie in its ability to meet the diverse clinical needs of Chinese medical professionals, thanks to its high-purity bone morphogenetic protein and advanced carrier technology, which ensure both product stability and ease of use during procedures.

The two companies began their partnership in 2022 with an exclusive sales agreement for the hydroxyapatite (HA)-based artificial bone "Bonegros" in China. They have achieved annual local sales of about 10.5 billion won based on hospital supply prices.

Meanwhile, Novosis is aiming to obtain approval in China by the third quarter of 2027. The two companies plan to jointly implement a phased market entry strategy, including regulatory approval preparation, product shipment, and medical staff training. Novosis is already being launched and sold in several countries worldwide. CGBio is expanding its global partnership base, including an exclusive supply agreement with Johnson & Johnson MedTech, a global leader in medical devices. Additionally, the company is strengthening its position as a global regenerative medicine company by conducting clinical trials for FDA IDE (Novosis Putty) in the United States, pursuing an IDE in Japan, and expanding its business into Southeast Asia and the Middle East.

Yoo Hyunseung, CEO of CGBio, said, "Demand for high-quality bone treatment solutions is rapidly increasing in the Chinese orthopedic market. In addition to Novosis's unrivaled technological competitiveness, our partnership with Sanyu Medical, founded by experts from Medtronic who have the best understanding of the bone graft market, is strategically significant." He added, "Based on this strategic partnership, the two companies will provide improved orthopedic treatment options for Chinese patients and further strengthen CGBio's competitiveness as a global regenerative medicine company."

This content was produced with the assistance of AI translation services.