Hugel said Wednesday that it plans to establish a subsidiary in the United States jointly with Croma-Pharma GmbH, as the Korean company is preparing for the successful launch of Botulax, its botulinum toxin product (BTX).
Croma-Pharma GmbH, an Austrian company, currently holds Botulax distribution rights in the U.S. and Europe.
Hugel will invest $90 million and acquire 70 percent share for the new joint venture company, while Croma plans to transfer its Botulax distribution rights in the U.S., Canada, Australia, New Zealand, and also transfer entire equities of its Canada and Australia subsidiaries in exchange for the 30 percent share of the joint venture company.
As a result, the joint venture company will secure exclusive license rights for Hugel’s Botulax and Croma-Pharma’s HA filler and PDO thread products in the four countries
With the license, the subsidiary will be in charge of developing and commercializing Hugel’s Botulax product and Croma-Pharma’s HA filler and PDO thread products and spearheading all clinical, regulatory, and marketing operations to ensure a successful entry.
Also, the joint venture company will be collaborating with Croma for marketing activities in Europe.
“The U.S. is a huge market that accounts for the majority of the global botulinum toxin market,” Hugel CEO Sohn Ji-hoon said. “We have taken the very first step of our global initiatives, and through it, we plan to strengthen our global footprint with Croma further.”
Croma’s CEO, Andreas Prinz, also said, “By partnering with Hugel in these major aesthetic markets, we will clear another hurdle to our international expansion process through intensifying our relationship with Hugel.”
Both companies will undoubtedly benefit from the collaboration experiences in North America and Australia, Prinz added.