HL Genomics to Expand with Second Plant, Aiming to Become a Partner-Oriented API Company

HL Genomics IPO Press Conference

Expanding Production Capacity with New Yongin Plant

Extending Business to CMO, CDMO, and Microneedles

"We will become a partner-oriented API company with global standards for production infrastructure, built on quality and trust."

Kim Hojin, CEO of HL Genomics, held a press conference related to the company's initial public offering (IPO) at the Conrad Hotel in Yeouido, Seoul on the 8th. He stated, "HL Genomics is a company with a stable portfolio of APIs for chronic diseases and industry-leading profitability." The company is advancing its business model beyond simply supplying raw materials, evolving into a "partner-oriented API company" that supports both product development and commercial production for finished drug customers.

Kim Hojin, CEO of HL Genomics, is announcing the KOSDAQ listing strategy and mid-to-long-term growth plan at the IPO press conference held on the 8th at Conrad Hotel in Yeouido, Seoul. Photo by Kwak Minjae

Founded in 2000, HL Genomics is a company that develops and manufactures active pharmaceutical ingredients (APIs), which are the key raw materials for finished pharmaceutical products. Its parent company is Hanlim Pharm. Based on high-purity crystallization and impurity control technologies, HL Genomics has built a high-quality API portfolio focusing on chronic diseases such as cardiovascular, allergy, musculoskeletal, and neurological disorders. Its core products include pitavastatin calcium (an API for hyperlipidemia treatments), S-amlodipine nicotinate (an API for hypertension treatments), and bepotastine besilate (an API for allergic rhinitis treatments). As of last year, the company's revenue composition was 45.2% from cardiovascular and 27.6% from allergy treatments, indicating a diversified structure that reduces dependence on specific items.

According to the company, when a finished pharmaceutical manufacturer wants to change its API supplier, it must undergo new manufacturer qualification assessments and raw material-to-finished product linkage reviews, which require significant costs and time. For this reason, finished drug companies rarely switch from verified suppliers. HL Genomics stated that, based on this industry structure, it has secured long-term business relationships of over 10 years and a high repurchase rate.

The company's performance has steadily improved over the past three years. On a consolidated basis, revenue increased from 24.8 billion won in 2023 to 28.9 billion won in 2025. Operating profit margin also rose each year, from 30.9% in 2023 to 32.3% in 2025, with a three-year average of 31.7%. The company explained that this is the result of a high value-added product-centric portfolio combined with efforts to reduce manufacturing costs.

To meet increasing demand, the company plans to build a second plant in Yongin. Construction is scheduled to begin in the third quarter of this year, with completion targeted for the fourth quarter of next year and commercial production to start in 2029. The facility will include one large production line and two small lines. The large-scale equipment will double the production capacity for existing products, enhancing cost competitiveness, while the small-scale equipment will be optimized for CMO and CDMO business, offering a partner-oriented model to domestic and overseas finished drug companies. The co-development project for the macular degeneration treatment HL267, which is currently underway with parent company Hanlim Pharm, is cited as a representative example.

In the mid- to long-term, the company also plans to pursue a contract manufacturing business for vaccine microneedles. In 2023, the company signed a strategic partnership with Quadmedicine, securing exclusive manufacturing rights for three globally commercialized vaccines. CEO Kim explained, "Quadmedicine will provide microneedle technology development and manufacturing facilities for global commercialization, while we will establish a contract manufacturing plant to exclusively produce and sell to global buyers." He added, "We expect to begin construction in 2028, in line with the progress of Quadmedicine's R&D."

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